How to increase your customer lifetime value by creating a culture of care.

Jay Abraham says that there are three things needed to increase your business – increase the number of clients, increase the average size of the sale per client or increase the number of times clients return and buy again.’ And while we often talk about getting more clients or price increases, we don’t often focus on how to keep a customer for life.

But keeping a customer for life is a vital part of building your business. And creating a culture of care in your business is a vital part of creating a customer for life. We do that by treating customers as if they are going to be in your business and in your life for a very long time. Even if they don’t, at least have the mindset that they will change the culture and behaviour of those in your practice, especially you.

A customer for life mindset

Just yesterday, I received a text from a client I had been working with, Maria, and she was thrilled because one client had called her from overseas to let her know about achieving her dream role as a professor at a prestigious university, and she received a text from another client who was a CEO who had decided to break up with her boyfriend who wasn’t treating her well.

When we spoke, she said, "I’m just so thrilled for them both, but even more rewarding is that they thought to call and let me know."

In business, you often hear people ask, ‘How can I increase my customer lifetime value?’ And it’s not a bad question. In fact, keeping a customer for life is exactly the mindset we need to have, and in Maria’s case, she cares for her clients like they will be with her forever, and she does genuinely care.

Benefits of increasing your customer lifetime value

When you are trying to find new clients all the time, it eats into your costs and increases your churn rate. That’s because customer acquisition costs a great deal more than customer retention. But if you want less costs and churn, you need to really have a mindset that you're going to have this customer for life. Once you do that, you’re in a position to set up your culture, your systems and your practice around clients that are going to be around for a long time.

Robbie Kellman Baxter, who wrote The Forever Transaction, says, ‘By treating your customers like members, and focusing on helping them achieve their desired ongoing outcome (forever promise) you will build deeper relationships, increase customer lifetime value and probably enjoy more predictable revenue.’

Of course, some people may not want as much intimacy in their business or practice. And in that case, having high customer turnover can suit them. However, for most of us, customer churn is not a great way to build up our businesses or practices. And it’s not a great way to deliver extraordinary customer service to our clients either.

Creating habits that build lifetime customers

Building habits that create a lifetime customer is really about being clear about who your ideal customers are. And once you find them, it's about treating them like they will be with you for a long time. But to do that, you've got to really look at what is happening for this person and how you can make it better for them.

Ask yourself:

• What is happening for your client?

• Why are they working with you?

• What steps can you take when your initial work together is finished?

• What steps can you take if they don't continue working with you?

• What do they say after you’re finished working together?

• How can you stay connected?

• Have they become an advocate for you?

It’s important to stay connected. And if you do that, and your customer has become an advocate for you and your work, then you’re well on your way to building a lifelong client and increasing your customer's lifetime value generally.

Questions

1. How long does your average client work with you?

2. Would they call you if they achieved a promotion or broke up with their boyfriend?

3. How much is finding new clients costing you?

I’d love to hear your thoughts….