Day 10: Lifetime Value of a Client

I mentioned this in a previous post, and it’s time to come back to this topic.

The Lifetime Value of a Client

Probably the most annoying thing (for me) with small businesses and non-profits is when they won’t spend money on promotions or advertising because the cost of their product is on the lower end.

They think, oh I’m only selling this one $500 thing, I can’t afford someone to write the ads, then an employee to go to an event for recruitment, etc.

Do the math OVER TIME

The first product might be only $500 (or less!), but don’t you have other products to sell? Is this the only thing they’ll ever buy from you??

Probably not.

You’ve probably thought of that already: you’ve probably made the required add-ons to get a higher ticket price, so now you’re thinking, “this effort will result in a $1000 sale all combined.”


Now this client is in your pipeline. If you’re selling a Thanksgiving package, maybe they’ll give your product as gifts for Christmas. If they liked it, your business will be part of their annual holiday traditions.

For some activities, one sale could result in registration for all the school-age years of a student’s life.

For a non-profit, that person may donate or participate in a walk-a-thon not only this year but also every year after this.

That customer’s sale is actually much higher over time: and you didn’t even have to do anything new the next few years.

Look at the full picture

When you’re considering re-writing or re-designing your website, don’t just think, “it will bring me 10 new customers at $500 each.” Consider the lifetime value of that client.

“This will bring me 10 new customers at $5,000 each.”

Hopefully, more than 10 new customers if I do my job right.

Your website, ads, and products should be compelling enough to get them in the door. The rest of your business is focused on exceeding expectations so they come back to you year after year.

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