Profitability Point #3 – Loyal Customers = Highly Profitable Customers

We know that affluent customers are extraordinarily loyal which brings a bevy of benefits including the fact that most are a pleasure to work with, it will decrease in your marketing costs and ultimate create higher profitability.

As a result of their innate loyalty, affluent clients have a substantially higher customer lifetime value.  Customer Lifetime Value is defined as the total value, in monetary terms, of your average customers spanning the entire period that these customers are likely to do business with you.
It’s the potential contribution of your customers to your business over a period of time.

When acquired as customers, the affluent customer base could potentially lead to more profit for your business. In my many years in marketing, I’ve met many business owners who don’t understand what Customer Lifetime Value is, much less its importance and the impact it
has on their bottom-line. To most of them, what matters most is to increase revenue by continuously acquiring new one-shot customers.

This is one of the fatal mistakes that many business owners make, but it is totally avoidable.  Consider this staggering statistic – it’ll cost you 7-10 times more to attract a new customer
than it does to bring one of your past customers back to you.

Where do you want to invest your marketing dollars?

If you’re a smart business owner, you’ll understand that every penny you invest in marketing is most likely going towards acquiring new clients. You’ll also realize that once you’ve acquired the clients, you just can’t afford to let them go.

Isn’t it time we all took a lesson from Jesse James?

Profitability Point #1

Profitability Point #2

Listen to Profitability Point #3 here!

Thanks and let us know your thoughts. I encourage you to leave your comments or questions below.

Article by Kelly K. O’Neil, Million Dollar Marketing to the Affluent Coach and Creator of the Marketing to Millionaires™ Programs

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