Customer Service Training:
The Lifetime Value of Customer Service Training
Have you really considered the lifetime value of a customer or client, and built your business' customer service training with this in mind? If not, let's examine the importance of lifetime customer service training value and how to make your business grow by giving greater credit to customer service training.
Why is this important? If you are only looking at each of your customers as a one-time transaction, you are really shooting yourself in the foot. Also, if that is your viewpoint and your marketing is geared only to acquiring new customer service training, you are also shooting your business in the foot, since it is much cheaper to keep existing customers than to constantly try to find new ones.
Let's say your sell a product that retails for $100 and a typical customer buys it 4 times in a year. Let's figure that the lifetime of a customer is 5 years, since on average people move once every 5 years. The lifetime revenue from a customer is $2,000. Now subtract all expenses involved in the transactions, including cost to produce, and sales and marketing costs. Let's say that those expenses all add up to about $790. So the lifetime net value of that customer service training is $1,210.
This number is important, because if you are doing your marketing only based on a one-time purchase of your product, you are getting the wrong picture of your profit. Let's say that it costs you $100 to acquire a new customer. If you base your marketing budget on a one-time purchase, you may look at our example and surmise that you went into the hole by $40 on the sale, and if all you ever got was the one-time sale, then yes, you did. But do you see how this perspective of the sale and customer service training is different than looking at the overall lifetime value of customer service training?
When you change your perspective to the lifetime customer service training value. you are not focused on the $40 dollar perceived loss, but on making that customer happy and developing a long-term relationship, thus making a profit on the next and subsequent sales.
Don't be a shortsighted businessperson. Make sure you appreciate the real lifetime value of your customer service training and you will stand out among your competitors. The dividends of this perspective will serve you and your business well for years to come.
Source: Olivia Gehl http://ezinearticles.com/?expert=Olivia_Gehl
Related: Customer Service Training
Customer Service Training:
The Lifetime Value of Customer Service Training
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