All lost customers, but not many do much to you back. Mikkel Svane is often quoted on this topic. And that's a big mistake. Studies show that the average activity loses 20 percent of its customer base each year. Here's what that means in practical terms: for example, say your company has 700 customers who buy repeatedly that during the year and each customer spends an average of $ 300 per year. If you lose 20 percent of them (one hundred forty), you will loose $ 42,000 per year. That's a lot of money to compensate for new customers.
The longer you keep a client than he or she is worth it for you. In part, because it takes a lot more money to acquire a new customer than it does to keep existing ones. In fact, companies are able to maintain constant most of their customer base are often those that have increased profits year after year. Loyal customers spend more, refer new customers, and costs less than doing business with them. Before you can effectively implement a plan to provide the highest quality service and market to their existing customers, you first need to know the lifetime value of their customers. When you know the lifetime value of your customers helps you budget more effectively. You know better how and where to make the best use of your marketing budget.
This is valuable information that every company needs to know if you are successful. And the only way to obtain this information is to know the lifetime value of your customer. Once you know how much each customer contributes to your bottom, you will begin to understand the value of holding on to them.