High Value Customer and Retain: How to find them in your Small Business?
In this article, we’ll talk about how to find and keep high-value clients in your small business. Flow of cash is king in every business, especially new and small enterprises, and cash flow comes from a steady supply of consumers who are willing to spend you for your goods and services over a long period of time.
Growth Strategies: High Value Customer and Retain
Strategies such as Client-led growth, or adding customers to grow the business, is among the most significant growth strategies. In order to do so, firms must master the art of obtaining and maintaining high-value clients.
In other terms, a small business must first know its Customer Lifetime Value and then enhance it over time.
Introduction: What is Customer Lifetime Value (CLV)?
Customer Lifetime Value (CLV) is the overall value of a client over their lifespan. It represents the net present value of all future cash flows projected from that client.
CLV is an excellent indicator for organizations to use when evaluating the worth of their consumers. CLV assesses the durability and profitability of a customer’s connection with a company. It gives information about the customer’s lifetime worth to the company over time.
A company’s CLV can be determined by dividing the total income generated by that client during their connection with the company by the cost of obtaining them as a customer.
Customer lifetime value can be calculated by examining the value measurements and customer value indexes listed below:
Customer Value Metrics
- Revenue per client – How much money does a customer bring in?
- Profit per client – How much profit is generated by the customer?
- Customer repurchase rate – How frequently does the customer come back?
Customer Value Index
- Total amount of items purchased by the client during the course of his or her life
- Average transaction value over the customer’s lifetime
- How frequently a customer purchases the product in a month or year
- The duration of the customer relationship
- The number of referrals made by the consumer
- Every sale results in customer happiness.
As a small company, it is critical to evaluate and monitor the metrics mentioned above in order to truly understand the lifespan worth of the customers, and then direct focus and affiliate marketers to the different customers that provide the highest overall value.
Client Financing Costs and Marketing Budgets
For instance, suppose you have $100 to spend on a promotional campaign. How would you decide to spend it? Moreover, Do you spend in Facebook or Google ads, cold calls or cold emails, billboards or TV commercials? Because resources are limited, how you chose to spend your advertising budget should be guided by the data created by the KPIs listed above.
Understanding the different types of clients who provide the most overall value is critical; this is where you should concentrate your marketing budget.
Your advertising budget is defined as the cost of gaining a customer. To receive the best return on marketing investment, marketing spend should result in the highest overall total income.
Using Skhokho to Track your Customer Value Metrics
In order to recruit and maintain high-value customers, small businesses will need to develop a suitable means to track their customer value metrics. Skhokho offers a fully linked CRM and Project Management software that allows you to measure and track key indicators.
Skhokho Customer Dashboard
Sales people can track the lifespan worth of customers over time using the Skhokho Client Dashboard, which is available on the project management and CRM app. They may see how much income each customer has earned in total.
Sales CRM Dashboard : High Value Customer and Retain
These metrics, when combined with the CRM Hustle details client information, can be used to deduce the source leads that convert into high value clients.
When you begin assessing values, you acquire thoughts on which to act. This is the significance of good CRM system. The built-in link with Project Management Software enables the sales team to keep monitoring the lifespan worth of the leads that transformed over time, going beyond commission observed and analyzing real revenue into the organization.
Creating Sales Targets with Objective Key Results (OKRs)
OKRs with objective key results are the ideal instrument for tracking and improving on the customer value index; as a business, you do not simply recruit consumers and wait patiently for them to buy a product.
Regular clients and individuals who have previously expressed interest in your product are the most likely to repurchase it as well as suggest and refer it to other potential consumers.
As a result, it is critical that the most essential customer value index measure you track is “Customer Satisfaction Score.” You may track this by creating a Customer Satisfaction form and sending it to your clients, asking them to assess their enjoyment doing business with you.
Make a scale of 1 to 10 for questions like these:
- In what ways did the product/service fulfill your expectations?
- What is your opinion of the product’s value for money?
- How would you rank the quality of the product/service you received?
- How probably is it that you will recommend the product to whomever?
There are more inquiries, Skhokho is working on a customer feedback. The project management software in the coming days will have this feature. A user will have the ability to choose the right survey and send a link to a customer to respond.
You may also apply Objective Key Result ratings. For tracking following the client’s response. For instance, a company may set a goal of 95 percent satisfaction. The metric updates every time a customer satisfaction survey is completed. It allows you to assess how well you are doing in reaching the goal.
How to Begin with Skhokho Business Management Software
Checkout our documentation here: https://skhokho.io/documentation/guide/
Register for a free 14 Day no credit card required trial here: https://skhokho.io/authentication/register
Read more on Objective Key Results: https://skhokho.io/objective_key_results_okr_software
Read more on CRM Software: https://skhokho.io/crm-sales-management-software-business-development