A business without clients will not survive the first year. And a business with ‘repeat’ clients can last 100 years. Isn’t it strange that some sales persons feel that difficult and downright ‘ornery’ clients are not worth their best effort to serve them? Don’t they know that their salary depends on having ‘paying’ clients who keep coming back for more?
David Schwartz in his timeless book, “The Magic of Thinking Big” tells about a Director of a big store who overheard a heated conversation one of his sales persons had with a client and saw that the client left the store quite angry.
Then the salesman justified himself to his colleague by saying, “I’m not going to allow a ‘2 dollar’ client waste my time and make me disorganize our shelves just to find the article he was looking for. It’s just not worth it!
The boss said to himself that things were going downhill if the sales team thought that 2 dollar clients were not worth serving politely and with courtesy. A clientele who regularly comes back for more is the secret to profit. And he knew that often no profit was made at all on the first few sales!
Things had to change!
So he called in his accountant to do some research on the average sales per customer over one year’s time. He was surprised himself by the results. The average client brought in… can you guess…362 dollars over a year’s time. And we are not talking about CLV (Customer Lifetime Value).
Needless to say a conference was organized on this subject and the behavior of the salespersons improved once they knew it WAS worth it!
Know the life time value of your customer
This concept applies to online marketing too. My mentor Alex Jefferys, (www.marketingwithyou.com) says he knows exactly the value of each client. He makes one hundred dollars each time a client buys a low priced front end product. He gives fantastic value in his ‘first contact’ product, the price is extremely attractive (around $7 to 10). So his clients feel they are getting a bargain! On top of that, he has other affiliate marketers promote his product to their mailing list. It is like having others selling for him to bring in paying customers. Why are they motivated to do that? He gives them 100% commission on the product that took him months to create!
Now why would he give away all his profit to other sellers? It is because he knows that the client will be lead through the sales funnel and buy other higher priced products where he gets to keep all the profits for himself. Because it is an established fact that when a client is satisfied by your service and your product brings value to his life, he will be happy to continue to buy everything you have. Why look elsewhere?
If you are aware of this, you will no longer consider having to serve timewasting, small spending and hostile clients as not being worth it! If you can solve their problem and be friendly about it they just might guarantee ongoing revenue for you and your family for the rest of your life!
Keep in mind how much your client is worth over your (or their) lifetime!