Knowing what customers are worth is critical. Retaining them is priceless.
Boise, ID (PRWEB) October 13, 2010
As the recession continues to hammer businesses across the nation, the importance of retaining existing customers becomes increasingly important to companies that want to survive and eventually thrive again. To help business owners and managers fully understand how critical existing customers are, Robinson & Associates, Inc., has created a free, easy-to-use Customer Lifetime Value (CLV) calculator and posted it online.
The CLV calculator is located at http://www.rfactorstudy.com on the “calculators” page.
“Calculating the lifetime value of customers is nothing new in the business world, but it is often forgotten and now is the perfect time for businesses to put it to use again,” says Lydia Baird, director of business development for Robinson & Associates, a company that helps businesses with client retention and development. “The long-term value of a customer didn’t matter much in the glory days of our economy because there were plenty of clients calling or walking through the door. But our economic heydays are over and won’t be back for another three to five years if economists are correct in their outlooks.”
Determining the value of customers and knowing how to retain them is now a requirement, not an option, Baird says. “Measuring to determine how to keep customers coming back is a critical step toward going from hoping you will stay in business to knowing that you can grow your business,” Baird notes.
The CLV calculator has six fields that the business fills in. After filling in the fields, simply click on the “calculate” button and the calculator produces the customer’s lifetime value to the business. The CLV calculator also helps businesses understand what it’s worth over time to attract a new customer, Baird says.
“Here’s an extremely telling exercise,” Baird says. “After filling in the fields and obtaining the value, increase the number in the retention rate field by 10 percent and recalculate. The result is astonishing and should encourage any business to work hard to keep their existing customers.
“Just knowing what this means is valuable. If the average patient spends $20,000 at a dental office, for example, and the doctor has 2,000 active patients, increasing the customer retention rate by 10 percent could mean and extra $4 million for the practice. Knowing what clients, customers or patients are worth is critical. Retaining them is priceless!”
For more information, contact Baird at 208-991-2037 or at lbaird(at)raresults(dot)com.
Robinson & Associates, Inc., is a Boise, Idaho, firm that helps businesses measure and manage the quality of customer experience and improvements to their internal operations to enhance business performance and increase revenue. It is a leading company in client retention and development. Learn more at http://www.rfactorstudy.com.
Smart phone owners with a QR code reader app may go directly to the CLV calculator by scanning the code that accompanies this press release as a separate image. QR readers should be available as a download from the appropriate online app store.
MEDIA CONTACT: Tom Ellis
Ellis Communications, Inc.
Phone (417) 881-5635
Yahoo IM tom_ellis46