{"id":9899,"date":"2023-01-03T10:59:10","date_gmt":"2023-01-03T18:59:10","guid":{"rendered":"https:\/\/trustedandreferred.com\/?page_id=9899"},"modified":"2023-01-03T10:59:10","modified_gmt":"2023-01-03T18:59:10","slug":"a-clients-lifetime-value","status":"publish","type":"page","link":"https:\/\/helpingagentswin.com\/a-clients-lifetime-value\/","title":{"rendered":"A Clients Lifetime Value"},"content":{"rendered":"
\n
\n
\n
\n

Use the example below and figure out what the lifetime value of a client is. Use the metrics of your industry and the products you sell. Principals are the same for every industry and business.<\/h1>\n<\/div>\n<\/div>\n<\/header>\n<\/div><\/section>\n
\n
\n
\n

Just how much is a salon client worth to your business?<\/h1>\n<\/div>\n<\/div>\n<\/header>\n
\n
\n
\n
\n
\n

Attracting new clients to your hair salon is important BUT retaining your loyal existing ones is even more important. Why? Because of their\u00a0Lifetime Value<\/strong><\/em>\u00a0to your salon.<\/p>\n

Salon customer loyalty<\/h2>\n

Customer Lifetime Value (CLV) is one of the most important measures of the worth of a hair salon client.<\/p>\n

It calculates the expected $$$ you will receive from a loyal salon client over their projected lifetime as a customer.<\/p>\n

It\u2019s actually astonishing to see how big the Customer Lifetime Value can be.<\/p>\n

Calculate your customer lifetime value?<\/h2>\n

Salon example:<\/p>\n

    \n
  • Say your average hairstyle is $70.<\/li>\n
  • A salon client visits five times per year = $350 annual spend<\/li>\n
  • Add a couple of color services at $70<\/li>\n
  • Add a couple of retail purchases at $25 each<\/li>\n
  • Total annual spend for client = $540<\/li>\n
  • If this client stays with your salon for five years = total $2700 spent with you<\/li>\n
  • Keep them for 10 years = $5400 gross revenue<\/li>\n<\/ul>\n

    BUT there is more!<\/p>\n

    Great service will bring more referrals.<\/p>\n

    Future price increases and inflation will increase your income.<\/p>\n

    Invest in marketing your hair salon<\/h2>\n

    And the benefits of retaining loyal clients go even further. Invest in your hair salon marketing to your existing loyal clients and add more clients who will become loyal:<\/p>\n

      \n
    • Salon referrals will increase<\/li>\n
    • Average salon spend will go up<\/li>\n
    • Loyal customers are less price sensitive<\/li>\n
    • The costs of servicing them are less than new clients<\/li>\n
    • Complaints are lower<\/li>\n
    • Profits go up<\/li>\n<\/ul>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/section>\n<\/div><\/div><\/main><\/div><\/div>