Business Growth Dynamics

Increasing Customer Value

Most small businesses tend to focus on finding more customers and yet this is the most costly thing you can do. New customer or client acquisition is anywhere between five and fifteen (see note 1) times more expensive than working with existing customers.

There are some really simple things you can do to build on the customers you already have. Perhaps the simplest and quickest is to add another product or service offering;

It doesn’t matter what industry or service you come from, there are always additional services that customers need and will happily pay for. One way to help identify what customers are interested in is to find out what product they have bought before they come to you and what product they may need after buying from you.

• Someone needing their windows cleaned might be happy to pay a bit more and have their gutters cleaned of debris
• A person buying a mortgage might need or want a will or insurance
• Having a car serviced, they may want it cleaned afterwards

You don’t need to worry about whether you can or can’t deliver the service yourself because there are always ways to do a deal with another business via a simple joint venture. If you structure it right you can create a significant amount of profit by doing these types of deals with local business owners. They deliver the service so there’s no cost to you and you make a percentage of any business you pass their way.

Increasing customer value may not be as hard as you think and there are dozens of ways to negotiate and set up joint ventures.

Note 1: This is an estimate based on a broad range of businesses. It may be different for your business but the point being made is that customer acquisition costs are significant.

Here’s some more info about increasing customer value with a different take on it;

Yes, You Can Raise Prices in a Downturn — HBS Working Knowledge

Great pricers constantly mine this gap to identify opportunities, and they mind the gap over time, seeking ways to extend perceived value. To mine the gap, focus on how you can. Create more customer value. Increase customers’ …

Publish Date: 07/26/2010 15:00

http://hbswk.hbs.edu/item/6371.html

UK Retailers jeopardise £5.5 billion in sales through poor …

With consumers starting their Christmas shopping months in advance the increase in customer enquiries for retailers can gain momentum as early as September. UK retailers are risking their share of the £5.5 billion Christmas sales boom … These benefits can only be realised by diverting low value questions away from customer service agents.” Retailers can experience four times their normal level of customer enquiries in the build up to Christmas including more than twice …

Publish Date: 07/28/2010 14:20

http://www.callcentrehelper.com/uk-retailers-jeopardise-5-5-billion-in-sales-through-poor-customer-service-11968.htm

Why business has to make life better – values matter. Corporate ethics and corporate social responsibility (CSR). Motivation, leadership, marketing and management impact. Cause-related marketing and winning war for talent. Conference keynote speaker

www.globalchange.com Values really matter. People want to make a difference and feel proud of who they work for. Aditya Birla example of corporate responsibility and community involvement. Increasing motivation, winning war for talent, staff and cust..

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