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How To Keep Your Clients For Longer
Dive into Borks' essential guide to mastering Life-Time-Value (LTV) in 2024, your blueprint for transforming customer relationships into revenue streams. This concise guide offers practical insights into calculating LTV across various business models, from restaurants to SaaS, and unveils strategies to maximize this crucial metric. Learn to enhance LTV through targeted upsells, strategic downsells, and proven client retention techniques. Perfect for businesses aiming to elevate their growth, Borks' guide is the key to unlocking long-term profitability by focusing on what truly matters: delivering unmatched value to every customer.
Jan 12, 2023
3 minutes
#
Deliverability
What Is Life-Time-Value?
Life-Time-Value (LTV) is the average amount of revenue a customer will contribute to your business over the time they work with you. So, if you charge a retainer ($2k) for your service and, on average, a person stays with you for 3 months, your average LTV is $6k.
Restaurant (Single Client) → $20/meal → 2x/week → 1 year → LTV = $2,080
SMMA (Single Client) → $1,000/month → 3 months → LTV = $3,000
SaaS (Single Client) → $50/month → 3 months → LTV = $150
How Can I Make More Money Leveraging LTV?
Let's say you own a marketing agency and you currently have a few clients, but want to increase the amount they pay you over the time they work with you.
Simply take the AOV x ART = LTV
This calculation spits out a number that shows you how much you get paid per customer you onboard.
Now, how can you increase that number?
Create UPSELLS/DOWNSELLS within your business.
Creating Upsells
Upsells are higher ticket offers that you present to your clients to help them get closer to their goals while working with you.
When I had a home improvement marketing agency, we had TONS of upsells and went from a $2k-$3k LTV to $5k+.
How?
Well, once we onboarded a client, we offered other things like:
Google My Business Creation
Cold Email
Sales Reps
Etc.
Simply make a list of things you can sell to your current and non-current clients that will make you more money.
Creating Downsells
Downsells are a bit different and work really well when a potential prospect cannot afford your main service.
This also happened a lot in our company, where people could not pay for what we had to offer but still wanted to benefit from our services.
So we offered things like:
A Website
Google Reviews
CRM Access
Etc.
Again, simply make a list of things you can sell to your current and non-current clients that will make you more money.
Increase Client Retention
Now, let's say you can't figure out any downsells/upsells and want to just keep your business as is.
What you're going to want to do is figure out ways to increase the time your clients stay with you.
Here are some DUMMY simple ways:
Provide good results.
Easier said than done, but done right, clients will never leave you.
Keep clients notified.
A big part of client retention is keeping your clients updated on what's going on. Do things like notifying your client when each step in the service delivery process is completed, notifying them when you get results, and much more.
Overdeliver.
Something that worked very well in our agency was promising 2-3 roofing/HVAC jobs every month, but delivering 5+. What this does is set a good standard for your company and keeps people working with you for a LONG time.
The Final Step
The last step in increasing the Life-Time-Value of each and every one of your customers is…
Not having a sh*tty service.
The key to a successful business is not to be the best in everything but to provide the best results, in one niche, for one type of person.
Do that, and you'll never have to worry about money ever again.
How To Keep Your Clients For Longer
Dive into Borks' essential guide to mastering Life-Time-Value (LTV) in 2024, your blueprint for transforming customer relationships into revenue streams. This concise guide offers practical insights into calculating LTV across various business models, from restaurants to SaaS, and unveils strategies to maximize this crucial metric. Learn to enhance LTV through targeted upsells, strategic downsells, and proven client retention techniques. Perfect for businesses aiming to elevate their growth, Borks' guide is the key to unlocking long-term profitability by focusing on what truly matters: delivering unmatched value to every customer.
Jan 12, 2023
3 minutes
#
Deliverability
What Is Life-Time-Value?
Life-Time-Value (LTV) is the average amount of revenue a customer will contribute to your business over the time they work with you. So, if you charge a retainer ($2k) for your service and, on average, a person stays with you for 3 months, your average LTV is $6k.
Restaurant (Single Client) → $20/meal → 2x/week → 1 year → LTV = $2,080
SMMA (Single Client) → $1,000/month → 3 months → LTV = $3,000
SaaS (Single Client) → $50/month → 3 months → LTV = $150
How Can I Make More Money Leveraging LTV?
Let's say you own a marketing agency and you currently have a few clients, but want to increase the amount they pay you over the time they work with you.
Simply take the AOV x ART = LTV
This calculation spits out a number that shows you how much you get paid per customer you onboard.
Now, how can you increase that number?
Create UPSELLS/DOWNSELLS within your business.
Creating Upsells
Upsells are higher ticket offers that you present to your clients to help them get closer to their goals while working with you.
When I had a home improvement marketing agency, we had TONS of upsells and went from a $2k-$3k LTV to $5k+.
How?
Well, once we onboarded a client, we offered other things like:
Google My Business Creation
Cold Email
Sales Reps
Etc.
Simply make a list of things you can sell to your current and non-current clients that will make you more money.
Creating Downsells
Downsells are a bit different and work really well when a potential prospect cannot afford your main service.
This also happened a lot in our company, where people could not pay for what we had to offer but still wanted to benefit from our services.
So we offered things like:
A Website
Google Reviews
CRM Access
Etc.
Again, simply make a list of things you can sell to your current and non-current clients that will make you more money.
Increase Client Retention
Now, let's say you can't figure out any downsells/upsells and want to just keep your business as is.
What you're going to want to do is figure out ways to increase the time your clients stay with you.
Here are some DUMMY simple ways:
Provide good results.
Easier said than done, but done right, clients will never leave you.
Keep clients notified.
A big part of client retention is keeping your clients updated on what's going on. Do things like notifying your client when each step in the service delivery process is completed, notifying them when you get results, and much more.
Overdeliver.
Something that worked very well in our agency was promising 2-3 roofing/HVAC jobs every month, but delivering 5+. What this does is set a good standard for your company and keeps people working with you for a LONG time.
The Final Step
The last step in increasing the Life-Time-Value of each and every one of your customers is…
Not having a sh*tty service.
The key to a successful business is not to be the best in everything but to provide the best results, in one niche, for one type of person.
Do that, and you'll never have to worry about money ever again.
How To Keep Your Clients For Longer
Dive into Borks' essential guide to mastering Life-Time-Value (LTV) in 2024, your blueprint for transforming customer relationships into revenue streams. This concise guide offers practical insights into calculating LTV across various business models, from restaurants to SaaS, and unveils strategies to maximize this crucial metric. Learn to enhance LTV through targeted upsells, strategic downsells, and proven client retention techniques. Perfect for businesses aiming to elevate their growth, Borks' guide is the key to unlocking long-term profitability by focusing on what truly matters: delivering unmatched value to every customer.
Jan 12, 2023
3 minutes
#
Deliverability
What Is Life-Time-Value?
Life-Time-Value (LTV) is the average amount of revenue a customer will contribute to your business over the time they work with you. So, if you charge a retainer ($2k) for your service and, on average, a person stays with you for 3 months, your average LTV is $6k.
Restaurant (Single Client) → $20/meal → 2x/week → 1 year → LTV = $2,080
SMMA (Single Client) → $1,000/month → 3 months → LTV = $3,000
SaaS (Single Client) → $50/month → 3 months → LTV = $150
How Can I Make More Money Leveraging LTV?
Let's say you own a marketing agency and you currently have a few clients, but want to increase the amount they pay you over the time they work with you.
Simply take the AOV x ART = LTV
This calculation spits out a number that shows you how much you get paid per customer you onboard.
Now, how can you increase that number?
Create UPSELLS/DOWNSELLS within your business.
Creating Upsells
Upsells are higher ticket offers that you present to your clients to help them get closer to their goals while working with you.
When I had a home improvement marketing agency, we had TONS of upsells and went from a $2k-$3k LTV to $5k+.
How?
Well, once we onboarded a client, we offered other things like:
Google My Business Creation
Cold Email
Sales Reps
Etc.
Simply make a list of things you can sell to your current and non-current clients that will make you more money.
Creating Downsells
Downsells are a bit different and work really well when a potential prospect cannot afford your main service.
This also happened a lot in our company, where people could not pay for what we had to offer but still wanted to benefit from our services.
So we offered things like:
A Website
Google Reviews
CRM Access
Etc.
Again, simply make a list of things you can sell to your current and non-current clients that will make you more money.
Increase Client Retention
Now, let's say you can't figure out any downsells/upsells and want to just keep your business as is.
What you're going to want to do is figure out ways to increase the time your clients stay with you.
Here are some DUMMY simple ways:
Provide good results.
Easier said than done, but done right, clients will never leave you.
Keep clients notified.
A big part of client retention is keeping your clients updated on what's going on. Do things like notifying your client when each step in the service delivery process is completed, notifying them when you get results, and much more.
Overdeliver.
Something that worked very well in our agency was promising 2-3 roofing/HVAC jobs every month, but delivering 5+. What this does is set a good standard for your company and keeps people working with you for a LONG time.
The Final Step
The last step in increasing the Life-Time-Value of each and every one of your customers is…
Not having a sh*tty service.
The key to a successful business is not to be the best in everything but to provide the best results, in one niche, for one type of person.
Do that, and you'll never have to worry about money ever again.
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Lets schedule a free outbound audit. We're going to discuss your business, customer acquisition & bounce ideas about outreach. Worst case scenario you get 30 minutes of free advice. Best case scenario we get you tons of meetings booked into your calendar.
Get A Free Outbound Audit
Borks is a full end-to-end
consulting firm, dedicated
to helping B2B service-based
businesses acquire more business
using outbound outreach.
Copyright © 2024, BORKS MARKETING, LLC. (“Borks”)
From the team that brought you
Borks is a full end-to-end
consulting firm, dedicated
to helping B2B service-based
businesses acquire more business
using outbound outreach.
Copyright © 2024, BORKS MARKETING, LLC. (“Borks”)
From the team that brought you
Borks is a full end-to-end
consulting firm, dedicated
to helping B2B service-based
businesses acquire more business
using outbound outreach.
Copyright © 2024, BORKS MARKETING, LLC. (“Borks”)
From the team that brought you