Do You Really Understand The Lifetime Value Of Your Customers?

Have you calculated the lifetime value of your customers? Take the revenues or potential revenues from that customer and assume a 5, 10 or 20 year relationship and multiply the two numbers together. You will see that customer in an entirely new light! Studies show finding a new customer costs five to six times the cost of maintaining an existing customer. So customer loyalty plays a key role in achieving success in any business.

 In order to maintain all your current customers and increase your sales, you need to go beyond customer satisfaction and develop the rapport that will make your customers trust you. We all want to do business with people we like and trust. Great, but what is likeable about you and how do I know I can trust you? Here are some basic tips that will earn your customers trust and produce lifetime value.

 1. Listen and show concern.

Try and see things from their point of view. Are you (and your systems) easy to do business with or difficult to business with? Try buying your own service – is the process complicated, do your people sound pleasant and friendly when they answer the phone, do all the links on your website actually work?

Truly listen to your customer's concerns, instead of just using the time they speak to think of what you'll say next. Zig Zigler, the famous sales coach, had a great observation when he said: "You can get anything you want in this life, if you can just help enough other people get what they want". Do you know what your clients want?

2. Use humor.

One of the quickest ways to build rapport is through humor. A good joke or funny story eases tension and breaks down mental barriers. It also shows customers your softer, more human side.

3. Keep a good attitude.

Try to stay positive even if you are having a bad day. Negativity rubs off on people. Sometimes (without knowing it), despite the words coming out of our mouth saying one thing, our body language is screaming at people. So check yourself to make sure your words and actions are congruent. Albert Mehrabian found in his research, that when the words and the delivery were not congruent, 93% of the dominant message was unrelated to our content, our actual choice of words. Remember that "sales is nothing more than the transfer of enthusiasm", so be enthusiastic (no matter how bad you feel)! If you are not obviously sold on it, why would anyone else care?

4. Show Respect.

Treat your customers as you would your friends and family. Show them that you genuinely care about their needs. Always think – would I make this offer to my grandmother, would I treat my grandmother like this? If you adopt these simple ideas, life gets easier. It gets easier because you spend less time "hunting" for business and enjoy more "farming", with regular repeat business, because your clients like and trust you.

 Engaged employees are self-motivated. The self-motivated are inspired. Inspired staff grow your business but are you inspiring them? We teach leaders and organisations how to inspire their people. Want to know how we do that? Contact me at greg.story@dalecarnegie.com

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About The Author

Dr. Greg Story: President, Dale Carnegie Training Japan

In the course of his career Dr. Greg Story has moved from the academic world, to consulting, investments, trade representation, international diplomacy, retail banking and people development. Growing up in Brisbane, Australia he never imagined he would have a Ph.D. in Japanese decision-making and become a 30 year veteran of Japan.

A committed lifelong learner, through his published articles in the American, British and European Chamber journals, his videos and podcasts “THE Leadership Japan Series”, "THE Sales Japan series", THE Presentations Japan Series", he is a thought leader in the four critical areas for business people: leadership, communication, sales and presentations. Dr. Story is a popular keynote speaker, executive coach and trainer.

Since 1971, he has been a disciple of traditional Shitoryu Karate and is currently a 6th Dan. Bunbu Ryodo (文武両道-both pen & sword) is his mantra and he applies martial art philosophies and strategies to business.