Tuesday, February 1, 2011
The surprising value of a lifelong customer
So think about it this way:
The big money isn't in creating products; it's in creating customers. A single, lifelong customer who lives his life spending the way you want him to may be worth six or seven figures. A single one.
That guy who spends $2,500 a year with you is worth $60,000 over a lifetime (25 years). That means you only need SIXTEEN lifetime customers to reach a million dollars. Want $10 million? That is only 160 lifetime customers.
Yes, I know it doesn't work that way all the time, or for everyone. But I also know this. Customer loyalty counts. And that's worth a million every time.