Your Existing Customers Are The Fastest, Easiest Way To Explode Your Profits - If you actively...
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If you actively pursue follow up sales to your current customers, instead of treating them as one shot single sales, you will soon discover that your customers have a life time value (LTV) far exceeding the single sale. The life time value of a customer is defined as "the total value of your average customer over the entire period that they're likely to do business with you."
For example let's say that your first sale to a customer is generally $50. If you treat every customer as a single sale and do not make any follow up offers to that customer, then that will most likely be the lifetime value of your customers.
Now let's assume that you understand the lifetime value of a customer, so you continue to follow up with you current active customers and make them additional offers of increasing value and that your customers are on average active for a period of three years. Over that period of time your average customer buys $1,500 worth of products from you. Now the lifetime value of your customer is $1,500 instead of $50. Knowing this figure will allow you to much more accurately judge what you should be willing to pay to acquire a new customer.
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