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Mentor Plus Blog

Marginal Net Worth or Lifetime Value of a Customer

Posted By: Edi Osborne on 6/29/2009

What is the true value of a customer? This is a measure that is worth taking the time to calculate. Please go to the link highlighted below to learn how to calculate this number for your client's businesses.

http://www.authorsden.com/visit/viewArticle.asp?id=940

In his book, "Customers for Life", Carl Sewell calculated the lifetime value of a customer for his auto dealership was $332,000. When employees understand the impact a single customer can have on a business they become more Strategically Intellegent about how to respond to customer needs and complaints.

Marketing ans Sales Planner included in your PMP Tool Set is a great tool for calculating the Lifetime Value of a Customer.

See Customer Cost of Acquisition Blog also.

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2 Comments

    • Jul 06 2009, 7:53 AM David
    • If more CPA's understood the true value of a client they would provide more service to the existing client base and spend less money and time trying to get new client. If the current clients are treated well marketing to new clients is not as necessary.

    • Jul 17 2009, 10:03 AM Edi Osborne
    • Indeed. Raving Fans refer more ideal clients than any amount of marketing.

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