Parnershipping for life!

Do you think that lifetime parnerships are important in business?

Lets start with the numbers cause numbers never lie. Don't worry it isn't hard math at all. You should do this math if you are in business though. Do you already know what the lifetime value of your customer is. If you do you are way ahead of most others in business. Here is the equation LTV = average customer spend with you per year X 20 years. You can adjust the years if need be but on average you should calculate keeping your customer for 20 years.
I have done this with a few freinds to find out the LTV (lifetime value) of their customer is.

Joe (realtor) Average of transactions = 4 over 20 years average of $25,000 commission per transaction 4 X 25,000 = $100,000 is the lifetime value of his customer.

Nick (Chiropractor) His lifetime value of a customer was aprox $30,000 and his prices are below the standard rates (they even have family plans)

Sam (waitress) Tips only was on $35,000

If you do the math you know how much it is worth to you to keep that customer for life, rather then just hope and pray they do business with you again.

A friend of mine tells a story that is a great example of why you need to treat everyone you meet as a customer and a lifetime friend. I will not give all the details here but you can call and hear his story recorded @ (212)990-6793.
The abreivated version is his house was being broken into while he was out of town(he travels alot). He has met many of security systems salesmen over the years. Not one had stayed in touch with him. So when he needed a security system in his house what does he do. Goes to they yellow pages. Just think if one of those salesmen that he had met previously had took the time and sent a keeping in touch card he would have used them. Instead the first number he called is now recieving $40 per month from him. If you do the math you find that for a little time and maybe even a few dollars a year you can gain that customer even if it happens 2 or so years down the road, like in the case of my friend.
In conclusion I think you know how important the constant communication and relationship building can be to your business. Yes it takes a little time and a small cost, but by not doing it you will know the detrimental effects that will be in store for you and your business. Examples are real apparent in this economy just look at the custruction indusrty as well as the car industry. Your customers can not be taken for granted and you need to work on every relationship you ever encounter.

Appreciate someone today!
Give them an awesome day!
Jody