Boosting Lifetime Client Value
Let’s catch up with where we’ve been this week…
1. You have to spend money on marketing
2. Advertising for clients does not suggest you’re no good
3. Unless you market yourself, your target prospects won’t know you exist
4. The key to understanding how much you can spend lies in Lifetime Customer Value.
Today, let’s talk about increasing Lifetime Customer Value so that you can spend more – much more – than your competitors to attract a new client.
Several chapters of my book
are devoted to this topic, but I’ll cover them quickly today.
First off, it’s crucial that you accept the fact that people want to have an experience with your company. Starbucks’ success is due not to their great coffee – although that’s part of it – but more so to the experience their customers have when they visit “their” Starbucks.
I really don’t care whether you think it’s fair that you have to provide your customers with an experience… you’re not going to build a loyal following, get a LOT more repeat business, and get a steady flow of referrals unless you do.
Now, don’t get me wrong… I’m not saying you have to be phony. Not at all. In fact, you should design the experience you give your clients to be consistent with your personality and professionalism.
The first thing is to have fun. If you’re not having fun in your business, then something’s wrong. Prospects will sniff out your anger or frustration in a second, and you’ll sell a lot less.
The next thing is to make it fun for your prospects and clients. Can you make your marketing more fun? Can you create a client experience that’s more fun and rewarding? How about past clients… how can you keep them engaged with your business in a fun way?
Lots of ideas about this in my book, but one idea would be to send a humorous postcard from your vacation. What other contractor sends a postcard to their prospects, clients, and past clients? None of them do… which is why you should.
Briefly, you also have to:
- Get control of the phone
- Quickly control any potential damage
- Communicate frequently
You see, when you nurture your relationships with your clients, you get far more repeat business and far more referrals from each client… which dramatically increases their lifetime value.
Think about it, if you could count on every new customer eventually bringing another new customer to you through a referral, doesn’t it make sense that you could spend twice as much to get that new customer?
What if you could count on each new customer eventually bringing in two new customers? Three?
This, my friend, is the secret key to building a lasting, ever-growing contracting business.