Lifetime value essentially refers to the idea of what you’re customers will be paying you over their lifetime of working with you.
If you think about it, there are only three ways to grow your business. They are:
Let's think now... let's say you have 30 clients. And let's pretend they each pay you $1,000. And let's pretend they each hire you one time per year on average.
This means that you are making 30 x $1,000 x 1 = $30,000 per year.
Now what if you increased each variable by just 50%? Let's pretend you did some great marketing and were able to raise your rates, bring in more clients, and somehow convinced them to have more edits and updates done to their websites.
So that's 15 more clients you brought in. And they each start paying you $1,500 because you raised your rates. And instead of just hiring you once per year, they start hiring you 1.5x per year.
This means you'd suddenly be making 45 x $1,500 x 1.5 = $101,250. By just increasing the lifetime value of each client by a little bit and doing marketing to bring in a few more clients, you're suddenly making 338% more!
If you think about it, there are only three ways to grow your business. They are:
- Get more customers. We’re already in the process of doing this by marketing.
- Get customers to pay you more. By raising rates, you’ll immediate bring in more profit without any additional costs.
- Get customers to buy more often. You can come up with up-sells, cross-sells, or other ways to convince your customers to hire you more times in a year.
Let's think now... let's say you have 30 clients. And let's pretend they each pay you $1,000. And let's pretend they each hire you one time per year on average.
This means that you are making 30 x $1,000 x 1 = $30,000 per year.
Now what if you increased each variable by just 50%? Let's pretend you did some great marketing and were able to raise your rates, bring in more clients, and somehow convinced them to have more edits and updates done to their websites.
So that's 15 more clients you brought in. And they each start paying you $1,500 because you raised your rates. And instead of just hiring you once per year, they start hiring you 1.5x per year.
This means you'd suddenly be making 45 x $1,500 x 1.5 = $101,250. By just increasing the lifetime value of each client by a little bit and doing marketing to bring in a few more clients, you're suddenly making 338% more!
MARKETING ACTION STEP 14: How can you increase customer lifetime value?
Come up with at least 5 ideas of services or packages you can offer that will allow you to sell more services or products, convince clients to pay you more frequently, or raise your rates.
Scared of raising your rates? Lots of times it's just in your mind. I have a cool tool if you’re interested in raising your rates but might be fearful of losing clients. Shoot me an email at [email protected] and ask me about the unconscious questions process I've developed. It helps you discover what fear is holding you back so you can take more conscious control of your emotions and move your business and life forward in a more proactive way.
Scared of raising your rates? Lots of times it's just in your mind. I have a cool tool if you’re interested in raising your rates but might be fearful of losing clients. Shoot me an email at [email protected] and ask me about the unconscious questions process I've developed. It helps you discover what fear is holding you back so you can take more conscious control of your emotions and move your business and life forward in a more proactive way.
About Me
Martin Bentsen
Martin Bentsen, founder of Bentsen Breakthrough Consulting, has spoken numerous times at New York University, has run educational seminars at Actor's Connection on branding and marketing strategies for performers, and has written a 60 page informational book called Get Cast™, focusing on marketing tactics actors can use to find more consistent work. He is a member of both the National Association of Sales Professionals and Sales & Marketing Executives International, two highly acclaimed marketing organizations in the United States.
Martin graduated in 2011 with honors from NYU's Tisch School of the Arts' Film and Television program with a focus on directing and in 2010, he founded City Headshots®, which, according to Yelp, is ranked the top headshot studio in the United States. City Headshots currently employs seven people and has locations in New York, Denver, and Philadelphia. Some of City Headshots’ repeat clients include well known companies such as LinkedIn Corp, Facebook, American Express, and many of its photos have been featured in The New York Times and The Wall Street Journal.
As a business owner who has grown a photography business from zero to half a million dollars per year, Martin not only understands the intricacies of marketing and finding clients, but also what it takes for clients to successfully navigate the marketing world and make themselves memorable. He coaches small business owners one-on-one with their branding, marketing, and operational strategies, and in how they conduct themselves with actual clients.
Martin’s long term goal is to run major business seminars across the country while expanding his City Headshots brand to go international.
Martin graduated in 2011 with honors from NYU's Tisch School of the Arts' Film and Television program with a focus on directing and in 2010, he founded City Headshots®, which, according to Yelp, is ranked the top headshot studio in the United States. City Headshots currently employs seven people and has locations in New York, Denver, and Philadelphia. Some of City Headshots’ repeat clients include well known companies such as LinkedIn Corp, Facebook, American Express, and many of its photos have been featured in The New York Times and The Wall Street Journal.
As a business owner who has grown a photography business from zero to half a million dollars per year, Martin not only understands the intricacies of marketing and finding clients, but also what it takes for clients to successfully navigate the marketing world and make themselves memorable. He coaches small business owners one-on-one with their branding, marketing, and operational strategies, and in how they conduct themselves with actual clients.
Martin’s long term goal is to run major business seminars across the country while expanding his City Headshots brand to go international.