What's A Customer Worth To Your Business, Anyway?

Obviously, if you want to double your business in six months or less, you've got to sell a whole bunch of whatever it is you sell -- to a whole bunch of customers.

If you're like most of the entrepreneurs we work with, you're already attracting a stream of new customers. It may not be a flood or even a river, but it's a start.

Well, one of the fastest ways to increase your business is to maximize your profits from these existing customers. You'll be absolutely astonished when you see how much easy cash you're letting slip through your fingers right now (but don't kick yourself too hard, we're about to fix that).

We'll plug these gaping holes in your profitability in a moment, but first, let's see what each customer is worth to you now.

One of the major concepts you need to understand is The Lifetime Value Of A Customer. This is an actual number specific to your business.

It's vital to your success for two important reasons...

First, you've got to know where you are before you can determine where you're going. This gives you a baseline number so you can track your results.

And secondly, until you know exactly what each new customer is worth to your business, you won't know how much money you can spend in marketing to get that customer.

Soon, each of these new customers we help you bring in will immediately represent much more in bottom-line profits to you than you've ever thought possible. And, you'll know exactly what to do to increase your business even more.

But before we get into the nitty-gritty of how we're going to do this, let's take a look at what a customer is actually worth to you.

This is important, so please take a few moments to figure it out right now, as we explain it.

How to calculate the lifetime value of a customer to your business.

Before you can figure out exactly what your customers are worth to you, you've got to know a few things about your current business.

What is your average sale? (Simply add up your total dollar sales for a year and divide that by the total number of sales transactions you completed.)

How many times a year does an average customer buy from you? (Take your total number of sales transactions for a year and divide it by the total number of customers.)

For how many years does an average customer buy from you? (Remember, 20% of the population moves every year, so this should probably be less than 5 years.)

How many people does your average customer tell about you? (You may have to guess at this one. It's probably between 3 and 12. Generally, the better your customer service, the higher this number will be.)

What percentage of these people actually become customers? (Usually between 20% and 70%.)

Now, do the exercise to the left. Find out for yourself just how much money each of your customers is worth to you.

This is important!

You see, much of what you'll learn throughout this report will affect the lifetime value of each of your customers.

For example, when we teach you how to get your customers to buy from you more often, the increase will be compounded by the lifetime value concept.

And when we show you how to increase your average sale, it too will be compounded.

Plus, when we give you some specific ways to get your customers to refer many, many more people to you, your lifetime value of a customer will grow even more!

Of course, how well you service your customers has a gigantic effect on all of this, too. But remember, it all boils down to cash in your pocket. So, from now on, when a customer starts getting on your nerves (hey, it happens to all of us), simply think about how much your average customer is worth to you -- even the pains in the neck -- and smile.

Now, let's take a brief look at the steps we'll use to double your business in six months (or less). After this brief overview, we'll examine each step in detail as well as give you some specific techniques you can use to make it all happen.