Value of a client - Marketing⁺

Value of a client – Marketing⁺ a collection of papers from PlannedSites for SME's

"The only way to know how customers see your business is to look at it through their eyes." - Daniel R. Scroggin

This is going to be a short paper or we’ll be teaching granny to suck eggs.

The purpose is to get you to establish by your own calculations the value of the various types of client you have. The information can be salutary on its own but is also essential when calculating the effectiveness of different ways of marketing. We can calculate with great accuracy the cost of, say, a direct mail campaign but what’s the use if we can’t compare it with the value of the new clients it’s attracted?

In your marketing efforts you are gaining clients who have been attracted because of what and who you are; they aren’t likely to fire you after six months. So make sure that you consider the value of not only the initial sale, but an ongoing relationship.

In marketing you will engage in a variety of campaigns and they will target a variety of niches within your sector.  However, all have to be cost effective.

Create a few categories of clients for valuation purposes. You don’t want to overload yourself with too many but, obviously, the value of a limited company with a £1m turnover is going to be of greater value than completing a small project for a friend.

Whatever, please always know the value of the type of client you are targeting so you can measure the success of each campaign.