What kind of value does a new customer bring to a business? It’s tempting to just focus on the now and measure success by the numbers of new faces coming through the door rather than appreciating that one or two quality customers offers a higher return in the long-term which is the true value of a customer.

One of the things some businesses commonly get wrong is to measure advertising or marketing value on how many new customers they get through the door. A hairdressing business, for example, might spend £300 on an advert in a local magazine and expect to receive at least enough enquiries to cover the cost of the advertising fee plus another £300 because they’ve heard somewhere that advertising should effectively ‘double your money’. This would involve attracting 10 to 15 new clients, each spending between £40-£50, in order to be deemed worthwhile. However, in reality, advertising doesn’t work like that. A business might only receive one to two new clients following an advert, especially when it is only placed once, and this simply isn’t enough to satisfy most business owners who want an immediate return on their investment.

What some business owners are failing to see is longevity and the bigger picture. The first customer who walks through the door could become a customer for life and spend at least £40 a month over the next 20 years. That could be worth up to £3,000 in a five year period alone from that initial £300 advertising investment.

Just two phone calls from an advert could be worth thousands of pounds in the long-term and businesses need to start appreciating the long-term value of customers. You might not always recoup the rewards from marketing or advertising upfront, it might be a steady process.

Following the initial advertising investment, businesses need to work hard on keeping the new customers they attract. A happy customer will return time and time again and research shows that loyal customers do not just spend more over time, they also spend more each time they shop or use your service. So what might start out as a quick cut and blow dry could later become a full head of highlights, cut, style and pedicure/manicure.

If you have a question regarding the above, the please call us here at Get Customers Fast on 01268 540373 .

Also if you found this article of interest then feel free to share below. Also you can receive our updates direct into your inbox by clicking here and completing your details.