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Trustpoint Management Group-TX, LLC | Addison, TX

Oh well, it’s just one customer. This can be an extremely dangerous attitude to have toward a dissatisfied client. Our attitude and beliefs around each of our customers should come from the perspective of what the lifetime value of that customer brings to our company, and ourselves.

Consider a customer who each month spends an average of $100 with us. That is about $1200 a year . If we consider that an average customer stays with us about 5 years, that makes $6000 in value. But if that customer tells a positive story, or in some way influences one acquaintance each year to buy from us that’s another $6,000 times 5 people over the years or $30,000. Add that to the original $6,000, and now we’re up to $36,000 lifetime value of that customer. And if any of the acquaintances influence others to buy, the original customers’ value can skyrocket!

Satisfied customers compound their value over time not only through the revenue they generate but the revenue that their referrals generate. So it's important to take a longer term view when you are tempted to disregard a dissatisfied customer.

Going through this exercise can help you understand the value of great customer service. I visit my favorite clothing store in another town only once a year, but I have told dozens of people about it over the years and they have had the same experience: ‘the girl who waited on me was amazing. She really helped me make my decisions and I’ve recommended many people to her.’ Can one person make a difference? That’s the only thing that does make a difference – you and how you interact with your customers.

 

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