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Federal
Express is a company that focuses on the value of a
customer. If a mid-sized company sells 30 packages a week
(at $25 each), that's $750 a week, or $18,750 a year. If a
customer gets angry over a $25 shipment and switches his
business to a competitor, Federal Express loses thousands
and thousands of dollars. That's why every federal Express
supervisor is authorized to grant a $100 refund on the
spot, no questions asked, for any delayed shipments. $100
dollars is a small price to pay to keep an $18,750 a year
customer.
To
compute to value of the customer, answer these simple
questions:
-
If you
continue to provide acceptable service and quality, how
long will the customer patronize your business?
-
How
much will the customer spend in the average year? (make
sure you include sales increases due to grow on your
part or the customer's)
-
What's
the total value of this customer?
This
number should be engraved on your forehead and you should
share it with all your employees. It will help you focus
on the critical elements of building your business.
ACTION
IDEA:
Compute
the value of a few of your current customers or clients.
Memorize these figures, share them with your employees.
Ask yourself: What can I learn from this? How can I
improve my customer service and increase my value to each
and every customer?
Have a
wonderful and profitable week!
Jay
Copyright 2003, Guerrilla Marketing Association
Jay Conrad Levinson
The Father of Guerrilla Marketing
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