Find out how to calculate the lifetime value of a happy customer.

1. LIFETIME VALUE OF
A HAPPY CUSTOMER

2. What is the Lifetime Value of a Happy Customer?
When working on your customer Service strategy with
pdtraining its not only essential to have a full description
of all your customers, but equally its vital that you are
aware of your companies sales process and how the
customers came to be customers in the first place.

3. To give you an example, to send out a thank you for
doing business with us email to a customer who has
been with your company for a long period of time and
over that period spent in excess of $100,000 is not really
appropriate.
In this case a gift, a personal call from the owner or
something that really demonstrates that customers value
would be more acceptable. A thank you email might be
more appropriate to a customer who has just
downloaded an ebook from your website for $1.50.

4. A simple exercise you can all do is to look at how
much a customer is worth to your business over
their lifetime. Think dollar value. Think
Reputation, Think longevity.
To give you an example, A hairdressing customer is not just
a simple $50 haircut. If the customer has a great haircut
and receives the right customer service that 1 haircut can
become.

5. 1 haircut per month x I’m going to tell 5 friends because
the service was so good, who are also going to get their
hair cut once per month and who are also going to tell 5
friends who will also have their hair cut once per month.
If they keep coming back for 5 years. $50
becomes $50 x (5x5x12) x 5 equals $75,000

6. So when you know the potential value of that initial
customer is $75,000 rather than $50 your position and
commitment to customer service is going to dramatically
change. This is a really powerful exercise and helps really
focus your team.
Adam Palfrey
pdtraining Customer Service Trainer
View Customer Service Training Course Outline