Do you know the lifetime value of a customer? If you knew, you would take better care of your customers. Good customers are like comic books and baseball cards. Who would have thought they would become so valuable over time. The better we take care of them, the greater value they yield. It makes me wonder how much Spider-Man or my Mickey Mantle card might be worth on eBay today.

Customer Life Time Value Calculator

I was working with a client, when the question came up about the value of a customer. I created a simple equation that calculated the true value of his customer. It was surprising to learn how much each of his customers was worth to him and his business. We needed two pieces of information to determine the value. We needed to know how much the average customer does with him in a year and we needed to know how long the average customer stayed with him. Multiply these two factors and you will have your answer.

Customers are like gold, we must strive to retain all our customers and multiply their value in two ways. One way to generate more business is to increase the frequency and value of orders. Another way is to duplicate good customers through referrals, bringing in new business.

Work Hard or Work Smart With Referrals

Research tells us that it takes 5 times as much work and money to find a new customer as it does to keep one. If this is true, how smart are we if customers are lost through our poor salesmanship. How often we stay in touch with our customers is one factor that makes a difference in the success of a salesperson or a business.

The purpose of this article is to remind you of the importance of keeping in touch with customers so, they keep coming back. We must realize that our competitors are trying to take our best customers everyday. If we dont treat them like Mickey Mantle playing cards, we wont develop a successful business.

Start today and set a plan to contact your top customers and thank them for their business. If you dont do it, who will? If you dont know the value of your customers, use the calculator in this article to find out how much they are worth. Take the next step and ask for referrals to duplicate good customers and add more value to your business.

Steve Martinez

My name is Steve Martinez and I started this business development company to eliminate sales failure. I have spent the last few decades honing my experience as a National Sales Manager, Sales Trainer, Mentor and Author of Selling. This history provides the depth of my experience and value to you as a client in the Business to Business marketplace.

I am proud to say that our innovative sales management strategies are revolutionizing sales for business to business companies. My clients are taught the advantage of building long term profitable relationships using his customized sales action plans. The results are nothing short of magical. Salespeople are able to perform twice, three times and, in some cases, ten times what they used to do before. Sales Managers enjoy the Selling Magic system as they more effectively manage and forecast sales.

I am not new to sales management, technology and sales workflow. I bring 25 years of business management consulting experience. I have been fortunate to have traveled the United States as a National Sales Manager, National Account Executive where I learned the real world lessons of sales. I've also worked for franchise organizations leading sales to a network of over 700 salespeople.

I wish I could say that sales success came easy. It didn't! I had to work at selling and learn the tough lessons. fortunately, this made me stronger and wiser. Through my experience I learned why businesses fail and why salespeople struggle in sales.

I enjoy applying these valuable lessons, focusing on teaching others how to increase sales, become more profitable using technology and following the best practices of Customer Relationship Management.

Our clients tell us, Selling Magic is a logical choice. It provides advanced business development strategies. We are certified members of the Cargill Consulting Group and the Mastermind Consulting Group. Selling Magic delivers sales management and Customer Relationship Building solutions with a suite of consulting services designed to enhance your business.

Steve is an accomplished speaker and writer for business development projects. Sales Automation, Sales Coaching and E-Marketing are his primary projects in business development.

We invite you to discover the Selling Magic approach to sales management and how Selling Magic can help you "out wit, out smart and out last, your competition."