Customer Value With An Entrepreneurial Opportunity

As with any entrepreneurial opportunity the goal is to build a business and generate income.   When building your business it’s easy to be overcome with task of attracting new clients and forget about keeping the ones you have.

According to Dan Kennedy, most businesses lose customers every year and repeat the offense each year following.   Many businesses don’t spend enough time or resources on retaining current clients and most of the time cannot put their finger on why they’re losing customers.

Kennedy’s advice is to determine what each customer is worth and then decide how much you are willing to spend to keep that customer.

Erica Olsen from My Strategic Plan offers a formula to help you determine an overall customer value, stating that 80% of your business will come from 20% of your customer base.

With this figure in mind, it really puts the importance of retaining customers into perspective.  Until it’s too late, you may not realize the impact of losing a very valuable customer.

No matter what your venture may be or how long you’ve been in business, determine the value of your customers and put as much effort into keeping them happy as you do into pursuing new leads.