What is the Real Worth of a Client

Posted by | September 13, 2010 | Graham Lock's Articles | No Comments

Now you are probably thinking this is a really simple question, and what could it possibly do with assisting my business to grow, because growth and prosperity is what I genuinely want you to achieve.

So let’s expand on this a little. I often talk with businesses about how they can create amazing growth, imagine being able to at least Double or Triple the amount of clients that wanted to deal with you over the next 6-12 mths. Well if you get a grip on the following, you will easily achieve these goals.
For this exercise, let’s pretend we own a small coffee shop in Tugun or Coolangatta, business today is tough and we just are not getting enough clients walking past who are prepared to come in and try our coffee and food. Now, here I need to make an assumption, but do feel confident in this, because if you have invested a large amount of your hard earned cash in your business, I am sure you are making the Best Coffee and Treats available, and if you are not, why not.
Now, let’s look at the average spend of a regular client, who possibly only buys one cup of coffee per day over a 5 day period at around $4.00 per cup, are you aware that this client is worth almost $1,000.00 per year to you. Now I bet if I walked into your shop and put $1,000.00 on your counter, that you would be pretty pleased to see me and that the next time I walked into your shop you would remember me and make me welcome.
Yet, the majority of small businesses I deal with personally as a client in our areas do not seem to really care if you come back or not.
Why not try this, ask your client if he is a local or a tourist, ask them what they are doing here and what they are interested in. If they are a tourist offer them some of your great local advice, best surf spots, favourite restaurant and THANK them for doing business with you, you can bet your life they will come in every day for the rest of their trip, as they also want to feel wanted and part of something, especially whilst away from home.
Now, and this is the one you are really looking for, if they answer, I’m a local and you haven’t seen them before, this is potentially $1,000.00 looking you right in the eye. If they are new welcome them to the area. Really give this some thought, you know you make the best coffee and food in this precinct, why not welcome them with a Free Coffee or something similar, maybe a pastry to go with their drink, no charge. Find out a little about them, just some small talk, but be interested or at least make like you are.
So what have we achieved here apart from giving away a drink and a little of our time. What you have done is shown this potential $1,000.00 that you really value his business, and where do you think he will come to for his next drink or pie, and How Many of his Friends will tell about you.
You have just given away at cost, maybe $1.50, but created a client that will potentially spend a $1,000.00 year if not more for every year he is in your area. The way I look at this, is where else can you get this type of financial return for a $1.50 outlay.
Expand it a little more, and approach some of the local businesses, with a free coffee voucher or vouchers for their staff, one each. Every time someone redeems one of these, just do what we have already covered above and watch your business grow.
So the challenge is on, if I walk into your establishment over the next few weeks and you do not make any effort, be prepared to be named and shamed in a future article. Not something I want to do, because the growth of your business is what really excites me.
If you can’t see this idea or something working in your business, email me and I will be happy to share some of my ideas especially for your business.

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