- Image by Angela Radulescu via Flickr
A lot of small business owners are not doing anything with the clients they’ve already worked with. They work with them once and let them go.
To make more money in your business you need to know what a client is worth to you. By knowing the lifetime value of a client, you are able to easily create a marketing budget for your business. So what is the cost you are using to get a new client and what is the lifetime profit generated by this client. The answers to these questions are the key ingredients to making a decision concerning your marketing expenditure. Questions like, “What should I give away from free” is answered based on understanding the lifetime value of your client.
The Lifetime Revenue of a Client is:
The sum of (client revenue) / Number of clients
Here are three ways to make more money from your existing client base.
Offer Continuity programs
Create continuity programs for clients to work with you longer. Sometimes, clients need to work with you over a long period of time to really enjoy the benefit of your service. I have a 6 and 9 months package program. Most of the clients I sign up go for the 9 months because of the benefits associated with it “Total access to me for 9 months”. They realise the get more results with they have total access to me because they are able to solve any blocking problems they encounter. Clients get better results on my continuity programs, than my one time session. I sell more of continuity programs than me my one time session
Pack What You Know, do and Offer
I was able to charge more for my service when I packaged what I know, do and offer. Because my service is intangible, it was difficult to convince people of its worth in terms of the work done, and the result they should expect. Prospects find it difficult to see the real benefit of what my service can do for them which makes them reluctant to pay. But when I created packages I started attracting a-list clients. They thought I was “Hot” because I charged more and I don’t have to charge what my competitors were charging.
I gave my package a name that reflected my client unique perceives benefit and built my packages around that UPB. I also lower the risk of choosing any of my packages.
Create New Products and Services
To increase the lifetime value of a client you need to create more products and service. Try asking your list of clients what urgent problems they will like solving. You will be surprised about the result. Some clients want more off you, so you need to put yourself out there. In understanding them better, and seeking to find out what they want, you are letting them know you care. Survey calls will always give you valuable information about how to extend the life of your clients.
LET ME ASK YA THIS…
What are you doing to get closer to the money today?
For the FREE Report called, “19 Secrets to Exponentially GROW Your Business,” Check out www.beawealthyentrepreneur.com Â
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Joyce Oladipo
the Go-To-Gal To Grow Your Business
Author, Speaker, Coach, Entrepreneur
www.beawealthyentrepreneur.com
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Joyce
Grow Your Business Fast’s last blog post..3 Things to Do to Get Closer to More Money