A customer’s lifetime value, what a wonderful idea, sometimes I wonder if a few retail establishments even consider the value of a customer at any given time during a sales transaction.
My wife is a cosmetologist and has been cutting hair for many years now, and when one of her clients arrive she will always ask if they want something to drink. On occasion they will and when they do she will buy the drink from the machine for them. When asked why her response is because that person comes in every six weeks and pays me $125 for a service she could get somewhere else. Upon watching several of the other ladies I saw repeated times where a lady asked the same question but when the response came back yes they asked the client for the money. I asked them about this and the response every time was, the soda in the machine is $1 each and that could get expensive. I tried to explain that since word of mouth is their #1 form of advertising that doing the little things along with giving a terrific hair cut could bring in more referrals, and that the $8 dollar per year investment that they made for a return of $945 dollars was well worth it. But the potential of one referral that could net an additional $945 dollars a year was the main reason the $8 investment should be made.
Doing the little things can not only bring people back for more but it can bring their friends and family as well, and you must always consider this before approaching a customer and treat them accordingly.
What a great topic. You hear the phrase all the time that it takes a $1 to make a $1. I have been both the customer and the consumer asking what would it cost to keep a customer and if I do this. I just wonder why more companies don't think about this before they are approached by a customer. There is a great site that talks more about this @ http://www.giveemthepickle.com/
Posted by: Malissa | June 05, 2007 at 09:26 PM
Great question, to which I can find no good answer. It boggles my mind that more companies do not focus on this very topic, but instead spend more time focusing on the bottom line. As there are many examples out there like South West and others that show if you combine a good product with customer service that is truly customer oriented, then the bottom line will take care of itself.
PS. I tried to comment on your blog but it shows restricted access. I loved the Super Size Me show as well.
Posted by: JeffLaw | June 06, 2007 at 09:49 AM
I think that you made a great point that many don't even think about . What is the point in asking the customer if they want a drink then asking them for the money. If they want one and have to pay for it they will buy it on their own. They think of it as $1 for every customer, which adds up. But they should think of it as an investment in their customers and future!!
PJ H.
Posted by: PJ H. | June 08, 2007 at 08:59 AM
Lifetime customers are hard to find these days. Well not for Sprint, but thats on a different Blog. Jeff your on the right track when you talk about doing the extra things for your customers.And seeing to there needs I have a feeling that you will go far. Remember service is the key(make sure you have the box to stand on so you can reach them).
Posted by: Jay | July 13, 2007 at 05:37 PM