Maximizing Your Client Lifetime Value
Many businesses make the costly mistake of thinking that marketing efforts stop when a potential client turns into a paid client. And after pouring tons of money into marketing campaigns to acquire new clients, they find themselves baffled because there is no increase in revenue or, even worse, they lost money on the campaign. Singularly focused on acquiring new clients, many businesses overlook their most valuable asset, which is their current client base. They are not doing enough to derive the maximum lifetime value out of current clients, which can become a fatal mistake. Especially considering that, according to SCORE, on average “It costs about 5 times as much to attract a new client as it does to keep an existing one.”
To top it off, large competitors are invading communities and driving most of the purchasing power away from local businesses. And these local businesses have no leverage to fight them off in order to survive. As statistics show, 25 to 32 percent of local businesses close down within one year after the opening of a large-scale competitor in their area.