From the course: Customer Service: Creating Customer Value
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Current value vs. future value
From the course: Customer Service: Creating Customer Value
Current value vs. future value
- Right now, who is more valuable to your business? A customer that has been with you for years or a customer that is brand new? These two people are both customers, but one is more valuable to your business than the other. Why? The answer has to do with what we call current and future value. You see, it may seem like the longstanding customer is more valuable and rightfully so, but we need to remember that all customers were new at one point. The secret to understanding value in customers is understanding the difference between current and future value. It's my belief that every new customer has the potential to be a great customer. And so we need to focus on doing what we can to add maximum value for that customer and also to maximize the value of that customer. This is one of the reasons it's important to know a baseline customer lifetime value number. It gives you a point of reference to understand the value of a…
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