After speaking with a lot of coaches and clients I’ve found that most businesses treatment and appreciation of their customers revolves around how much they spend monthly with them. I’ve been guilty of this in the past as well. But today is a new day right?
Let me show you an example. I’ll use my coaching business as an example. My average client invests approximately $2,000 a month for coaching services. Now in the past, I looked at that client as just $2,000 per month. I know what you are thinking. $2,000 is a lot of money. I bet you really appreciated them for investing that kind of money with you. The short answer is YES I did. However, when I did the numbers on the lifetime value of a client, I discovered something amazing that revoloutionized the way I treat my clients.
What I discovered was the LIFETIME VALUE of my clients. You see, on average, my clients invest $2,000 a month, but they do this for an average of 1 to 2 years. Let’s take the middle ground and say 18 months for this example. That’s $2,000 multiplied by 18 months for a total of $36,000. I’ve recently moved to a 3 year minimum to work with me since I only want serious people as clients. Now the lifetime value is $2,000 times 36 months or $72,000. That’s impressive in and of itself. But here’s the kicker, I’ve also discovered that each client I coach refers me to more clients. On average, I sign up 2 more clients based on those referrals. So $72,000 times 3 (the original client plus 2 referrals) brings my AVERAGE lifetime value of a client to a whopping $216,000.
I don’t know about you, but when I repositioned $2,000 a month client into a $216,000 lifetime value ASSET, I started treating my clients a whole lot different. The gifts, thank you notes, and celebrations you share with your clients should reflect the proper level of excitement you have for each one of them.
So my question to you today is….. How are you treating and valuing your clients? Have you put the proper value on them? Are you showing them the proper amount of gratitude for their business?
I’ll guarantee that as your level of respect and gratitude for your client grows so will your business.