What's a customer worth?

I wrote about this in the past, (Click here to read my words), Here's someone else's words, from my email:

Know the Value of the Customer
Everyone in an organization should know the value of a customer. How much are they really worth?

Here is an example from a grocery store.

If the average family visits a store twice a week and spends $50/visit, at the end of 52 weeks the family will have spent over $5,000.00. Multiply that times seven years (the average family moves every seven years) and you find your customer (the family) is worth over $35,000.00.

Add to that the customers they might refer to you. Let's say that over time this happy family refers two more families to you. (This is conservative. Your happy customer has tremendous influence over new neighbors and friends.) That is another $70,000.00!

Lose a customer and you potentially lose over $90,000.00. So, if you worked at a grocery store and someone complained about spoiled milk, would you make a big deal out of it or give them a new carton of milk that costs less than a dollar?

Remember, this customer may be worth over $90,000.00! Once you know the value of a customer, you are likely to treat him/her differently during tough situations.

Copyright © 2004– Shep Hyken, Shepard Presentations

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