Thursday, December 3, 2009

The value of a lifetime customer.

The Psychology of SellingThe true value of a customer cannot be measured by simply one purchase. Once you make a sale to a Submitter you have to keep them and resell to them. It has been proven that once someone buys from you, they are far more likely to buy from you again. The smart business knows that the value of that $40 first sale may be $10 times that over a lifetime.

Knowing the value of a lifetime customer can determine your advertising budget and many other marketing strategies. If you only look at a customer as a one time sale, you could be losing 300% or more of your potential revenue.

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