7 Tips for Creating Lifetime Clients

If you aren’t converting first time customers into loyal lifetime clients... your business is dying. Acquiring a new customer is one of the most expensive activities inside of any business. The majority of your profit is made on the back end sales. Without repeat business… you have no business.

Running a churn and burn transactional business is awful downward spiral. It’s a never-ending daily grind where you’re constantly out hunting for clients. Not only does it cost an enormous amount of resources to continually acquire new customers... but it destroys your ability to provide great service to your existing clients (which ultimately affects your ability to retain them).​

The "Attracting Affluent Clients On Autopilot" System

Step 1) Identify — Uncover your most profitable opportunities

Step 2) Position — Establish authority in the niche market

Step 3) Attract — Get qualified prospects to come to you

Step 4) Engage — Educate and motivate prospects to take action

Step 5) Enroll — Selling conversations that convert prospects into customers

Step 6) Deliver — Designing and delivering an ideal customer experience

Step 7) Retain — Creating long term clients out of first time customers

Step 8) Refer — Getting high quality referrals to high value prospect

In this article, we’re going to explore the basic strategies for converting first time customers into lifetime clients.

Customer retention is the lifeblood of a client building business. Repeat clients create a solid and predicable stream of revenue that you can use to fund future growth. Not only will your profit margins skyrocket, but your customer acquisition costs will drop (referrals happen from happy clients).

Fail to retain your clients and you’re basically screwed. You will feel like Sisyphus, trapped forever rolling a rock uphill only to have it roll back down. Your reputation will suffer and it will get harder and more expensive to gain new clients.

Lifetime Value: The Critical Metric​

Most business owners have heard the statistics on the cost of acquiring new business vs repeat business. Depending on the source, you’ll see it’s anywhere between 3-30 times as much.

Whatever the real cost is… it’s expensive.

But here is the better question. Do you know how much a loyal client is actually worth to your business?

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

W. Edwards Deming 
American engineer, statistician, professor, author, lecturer, and management consultant

Knowing the Lifetime Value (LTV) is one of the most important metrics you can know about your business. Once you understand the LTV, you know how much you can afford to spend acquiring new clients. Even more important, you’ll know how much you can spend to retain your clients.

Yes. You are going to have to invest resources into client retention.

You don’t just “win” a customer and  they are loyal to you for life. It requires relationship building and continually providing value to retain great clients.

There are multiple ways to calculate LTV but for the sake of simplicity... we’re going to use a very basic equation.

[Average $ Revenue / Year] x  [Profit Margin] x [Average Customer Lifespan (in years)] = Life Time Value

Lets assume your average client generates $1,000 in profit / year and will stay a client for an average of 5 years. That means each new client is worth $5,000 total.

Let’s also assume that your average cost to acquire a new client is $1,000. That means in the first year, you are going to break even… but every year you keep the client you are going to net $1,000 profit.

That means the longer you can keep the customer coming back, the more money you’re going to make.

How much would you be willing to spend each year to keep that client coming back? Would you spend $100 a year to make $1,000? ($900 net gain)More importantly… would you spend $100 so you don’t have to spend $1,000 to replace the client you lost ($1000 expense + $1000 unrealized gain = $2000 net loss)?

Pretty eye opening once you look at it that way isn’t it?​

​7 Simple Ideas For Creating Clients For Life

​Remember that wealthy people prioritize relationships when it comes to doing business. Most businesses treat their customers like an ATM and never bother to create a genuine human connection with them.

Wealthy clients want to work with someone that they like and trust… someone who is looking out for their best interests and not how they can squeeze the most money out of them.

Keeping clients comes down to one very important thing. Constantly showing your appreciation.When your clients feel like you truly value them, they will value you.

When you have that strong of a relationship with your client, they aren’t going to drop you for another provider because they are cheaper.

Here are 7 inexpensive ideas to help you create a loyal clientele that stays with you for life.

1) Know Them by Name

Remember that a person's name is, to that person, the sweetest and most important sound in any language.

Dale Carnegie
"How To Win Friends and Influence People"

If you ran into your client at the grocery store… would you be able to address them by name? What if they called in and said “it’s Jon Smith”… would you know exactly who that is without having to pull up your address book?

Nothing communicates “I value you” faster than knowing someones name. Not much communicates “you aren’t important to me” when you don’t.

Do whatever it takes to know every single client by name.​

2) Know Their Family Members by Name

If you ran into them with their spouse or children… would you know who they are?

Whenever you are doing your initial intake session, make sure you find this out. The easiest way to do this is to have a “client information sheet” that you have them fill out on their first meeting with you. Sometimes they don’t fill it out completely, but they will talk about their family members from time to time.

Keep detailed records of this kind of information. The difference between asking “how’s your wife doing?” and “how’s Sharon doing?” is night and day.​

3) Know Important Dates/Events

Do you know when your client’s birthday is? How about anniversary? Do they have a big trip coming up? Is their kid on a travel baseball team and they are going to the national tournament next month? Is there kid graduating from school this year?

The more you know about the important events happening in your client’s life, the more opportunities you have to show your appreciation by doing something thoughtful. Sending cards or gifts on these dates is an easy, low cost way to show that they matter to you.​

4) Know Their Hobbies, Likes, and Dislikes

Is your client an avid cyclist? Super involved with their church? On the board of a non profit? Wine aficionado? Loves Italian sports cars? Watches?

These are all ways to create touch points with your clients. Not only will you have plenty of conversation topics, but you’ll have a great way to get involved with your client’s social networks (this leads to referrals).​

5) Ask For Feedback

I’m not talking about having them fill out an impersonal survey. I mean calling them up and asking them “how am I doing?” and “what can I do to better serve you?” and actually following through on their suggestions.

Your clients will tell you how they want to be served if you just listen to them. It also shows that you are humble and are always looking for ways to improve. Not only will it help you deliver a higher quality service, but when problems happen over the course of your relationship, your client will know that it was an honest mistake and that you are sincere when you say “it won’t happen again”.​

6) Connect Them With Cool People

The richest people in the world look for and build networks; everyone else looks for work.

Robert Kiyosaki 
Author, "Rich Dad, Poor Dad"

Do you have a few clients that you think would really get along? Can you connect your client with someone who will help them grow their business?

One of the best ways to create high customer loyalty is to become a center of influence and a connector. If you’re not already, try hosting a regular in-person networking event. Not only will you get to know your clients on a more personal level, but it’s a great opportunity for them to bring referrals to meet you on neutral territory.

7) Weekly or Monthly Newsletter

It amazes me how many business owners just completely ignore doing follow up activities. Don’t expect that your clients are just going to pick up the phone and call you when things happen. Stay in front of them with useful and helpful information.

This is a great way to continue to build your position, educate your client about how you can help them, and is also a great way to generate referrals (they can give one of their friends a newsletter as an introduction to you).

Whenever possible, send physical mail instead of email.

Yes, it might cost you a couple dollars to send them out… but it makes a huge difference when it comes to conversion rates. Also, your clients are more likely to see and read it when compared to email.

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John Doe
UI/UX Designer

About the Author

Hello, I'm Jake Hoffberg and I'm the guy who runs this website. You can read more about me and my story here .

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