About a year ago, I wrote a post about a Marketing Organization Chart which looked at the four key elements of your marketing plan: Strategy, Lead Generation, Conversion and Customer Service. While all the pieces are important, I would like to take a closer look at the impact of customer service on your overall marketing budget.
Many firms make the mistake of spending the bulk of their marketing funds on new customer acquisition, and very little on retention. In most cases, this is a huge mistake. Why? If you have existing customers, people who know and like you these are the people most likely to buy your new products and refer you to others who might use your services as well.
To understand the value of a customer, think about what that customer will spend, not just this year, but over the next few year. Consider also, what the impact would be on your business if that client introduced you to at least one other person who became a client.
How much is a customer really worth? And how much should you be spending on retention vs acquisition activities? Working with Howard Cox, an accountant at Sommerset CPA’s, I have created a model which will help you analyze your own business.
We will be demonstrating how this model works in a FREE seminar on January 26th. Seating is limited, so be sure to reserve your seat by filling out the form below. When you do, you will also be given an opportunity to download our LifeTime Value of a Customer worksheet.