Lifetime Value of my Job!

My wife was buying a blazer for our daughter and asked the clerk about the store’s return policy, knowing that teenagers change their minds. “Thirty days for a refund, then a store credit,” was the clerk’s reply. Satisfied, my wife bought the blazer.

Our teenager, however, wasn’t satisfied. When my wife tried to return the blazer three weeks after the 30-day deadline for refunds, she expected a store credit. The manager refused. When my wife asked if the manager cared about the lifetime value of a customer, the manager replied, “I only care about the lifetime value of my job.”

Here are a few questions to consider the lifetime value of your customers so that your employees understand what is at stake (in addition to their jobs) and focus on great customer service.

  1. How are your policies and procedures enabling your front-line people to take care of your customers? Or, are they frustrating your customers?
  2. As the business leader, how often are you observing your front lines in action or shopping your own business?
  3. How much time and money do you spend training your employees (an investment) compared to advertising (an expense) to attract new customers? What’s the ratio?
  4. Who are your most profitable customers and how do you retain them?
  5. Where did your best customers come from? How are you repeating this success?
  6. How are you competing with Amazon?
  7. How much do you invest to retain your best customers?
  8. If someone took a video of a negative customer experience with your company and was going to post it online for the world to see, what would you pay to prevent that from happening?
  9. What’s the lifetime value of your customers?

Keeping the customers that you already have is a lot easier and cheaper than finding new customers. Training your employees to take care of your customers, especially the most profitable ones, is a low cost, high value activity.

If you’d like help identifying and protecting your best customers and growing your revenues and profits, give me a call or send me an email.

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