Valuing Customers

In this week’s lesson we learned about the importance of valuing customers. There are two ways in which business owners can show that they value their customers:

1. Give them good customer service
2. Determine the financial value of each customer and strive to increase it

Giving good customer service is essential to running a successful business. Two of the best ways to increase revenues is to either increase your number of customers or try to persuade your current customers to buy more product with each purchase. Both of these can be more easily achieved when you provide your customers with good service. If you don’t, chances are good that those customers will take their business elsewhere.  Individuals can provide good customer service by politely acknowledging customers, providing helpful assistance, and giving each customer as much attention as they desire. In doing these three simple things, customers will feel valued by the company. When customers feel valued they are much more likely to make a purchase and become a repeat customer.

The best way to determine the financial value of each customer is to calculate your revenue for each week and then determine your regular customer base. After doing this, divide the weekly revenue by the customer base. This number will tell you the financial value of each of your customers. In viewing your customers in this way, you are financially valuing your customers. Once you know the financial value of your customers you can determine the best course of action to increase your revenues.

Learning about the importance of valuing customers has made me think about how I am going to apply this knowledge to both my $100 Challenge business as well as my Big Idea Company. I know that in placing an emphasis on providing great customer service I will be more profitable than I would be otherwise. 

$100 Challenge Update

This week I finalized my logo and packaging. In addition, I made my first batch of hot chocolate mixes that are now ready to be sold. I plan on beginning to sell my product starting next week.