Focus on the Lifetime Value of the Customer by James Malinchak

“Do not Look at the Initial Transaction. Focus on the Lifetime Value of the Customer.” ~James Malinchak

Bob has owned a popular small garage for almost 40 years. He started working there as a kid still in high school pumping gas for anyone who wanted it, and then learned how to repair and sell cars. The garage owner hired him as a mechanic and sales person once he left school. Bob was good at what he did, was living quietly and saved his cash so that when the owner retired, Bob went to the bank and secured a loan to acquire the garage from him.

In recent times Bob is known not only for his pleasing personality or his remarkable capability to fix cars. He can also be known as having one of the least expensive places around to buy a pre-owned vehicle. People ponder how he can be this good value and still have a large investment portfolio, send his children to private school, wife live in an affluent part of town. He buys cars that nobody else wants at very low prices.

Then he repairs them and sells them for little more than the expense of the repairs to the car. He does not purchase any car where the cost to fix it would create a selling price excessively over his average. Many of the local kids buy their first car from him, and he fills their first tank up as a congratulatulatory gift.

Bob realized early on that the buyer was no longer in the market for a car once that person bought a car. He realized they probably would not be in the market for a number of years. Nevertheless, the person would require the oil changes, repairs, gas, and annual state maintenance checks that car ownership incurs. However, his main "products" are the consumables required to run a car. You could say that his unique selling proposition (USP) was the cheapest used cars in town, - because that is what he has, and that will draw in the buyers.

The end result of this is that while it is true to say that Bob makes nothing more than his labor cost on every car sold, it is also true that he has every one of his mechanics working extended hours to keep up with the quantity of continuous daily car business that drives through his doors. The people are aware that Bob is not going to cheat them, and they take the new car to Bob for maintenance and repair even when they trade that car in for something better.

He supplies their annual maintenance inspections, gases their cars, and keeps a record of every car that goes through his garage. He knows exactly where to look for reoccurring problems when they bring in the car. Bob's original one-man garage now has 5 full-time mechanics, a youngster who pumps the gas, and a receptionist to deal with booking the vehicles in for repair or annual inspection. Most of his oldest clients have been with him ever since he started at the garage, and their kids are also clients now.

Give some thought to your own goods and services. How can you turn a one-time sale into a client who is with you for a lifetime, buying from you again and again? One of the ways is to keep your name on his table! Always make sure that any dealings your business has with his goes through you. Whether it's a sales brochure with new products, or an annual Christmas card - make sure you sign it personally.

Keep a card on every customer you've got. Each time you discover new things about them, write it there. Develop a short summary of the things they like and don't like from the discussions you have. Note if they have kids, gender and ages. What sport events do they enjoy? Where do they holiday? You aren't going to have a social discussion with your client, but asking if Alicia has cut her first tooth, or Bobby is graduating this year makes the client recognize that you do listen to what he says. This ability to listen will get you remembered in a society where most people are busy talking about themselves.

If your client buys something, don't forget to send regular updates about any upgrades, or special prices on the consumables associated with the equipment. Remember to call the customer regularly just to make sure that the item is still running well and is living up to the client's expectations - if not, explore possible solutions and causes, so you've got a satisfied client.

What you really are seeking is to create a connection with the client. This bond will set you up, so that anything he should purchase down the road your company supplies, he purchases from you. One of the benefits is he will purchase from you without checking out the competitors first.

"Profit in business comes from repeat customers, customers that boast about your product or service, and who bring friends with them.”

--W. Edwards Deming

James Malinchak, Featured on ABC’s Hit Tv Show Secret Millionaire, is known as by a lot of specialists as the World’s #1 Big Money Speaker Coach and Trainer. For Totally free Video Trainings on how to get paid to speak and how to be a speaker training, try visit here and learn more.