Today we are going to talk about the potential tens of thousands you could be living on the table if you don't understand this crucial concept.
How much is a client worth to your business? The answer WILL surprise you.
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So today I wanted to talk to you about something that only a few people understand and a lot of people are sadly mistaken about. We're going to talk about the value of a client. How much is a client worth to you?
So I’ll start with a story. I was supposed to meet a friend of mine, a restaurant and I was in charge of picking the restaurant. We get to the restaurant and surprisingly enough, the service is bad. You get there, they don't even say hi. You call the waiter, he looks at you from like, head to toes and doesn't show up and stuff. It was horrible, man. And to be honest, I've never been to prison, but I'm pretty sure that the prison cafeteria is more hospitable than this this place was.
So we're ready to leave the place and we ended up talking to the manager and basically told the manager, dude, we're not coming back. And so the manager answered “who cares? Don't come back. Who cares? You only spent 50 euros”. So that's the answer that the manager gave us. So I don't know what you think about it. So does it make sense to you when he said it doesn't matter? You only spend 50 bucks. All right.
So that's the thing I want to talk to you about. Because, you know, after you hear this, what is the actual value of the client? All right. So for this person, we were worth 50 bucks. OK. And my conception of things is different. I think that this manager had a very short sighted approach with business and how detrimental it is for his business, because he's not calculating the value of a client like you should calculate it. OK, so. Here's the thing, you shouldn't care about your client only based on the value of how much they ordered. Because if you do this, then you're going to disregard some clients and you don't see the ramifications of what you're doing.
Let me take the example of a restaurant where people care about you. So let's take you go through this. This absolutely awesome restaurant. So we have to eat together. And obviously, I'm in charge of finding the restaurant. And after days or weeks of research, like intense research and, you know, powerful algorithm and stuff, I come up with a restaurant. OK. So we go to this restaurant together. And the waiters, the managers and everybody cares. They care about you. You feel you feel like you're treated like a king. You get there. People have nice manners. They say hi. They smile and everything. You know, you have good service. They joke. Now you leave a tip and stuff. Right. So here's the thing. If you go to a restaurant where you're treated like a king, what do you do? You will come back!
What do people do when they go out to eat? Do they usually go by themselves? No, they don't. Right. They will come with someone else. So this client who spent, you know, 50 bucks or 100 bucks or whatever, next time they come, they're going to come with a date, a friend or a family or a family member. All right. And the next thing you know, there, they're two people. And these two people, they may spend another let's say two hundred bucks this time. So now I’m worth three hundred bucks. OK. Because first time I spent one hundred second time my network, we came back and we spent two hundred. All right. So let's say afterwards I have a date my friend. I have a date with this really beautiful woman and I decide to take her for the time of her life. All right. So I take her to that restaurant. All right. So what do I do? I'll go on tray with the desserts. We may get some champagne and I might buy some flowers from the do the selling flowers inside a restaurant. I will go all out, my friend. I'll be like, yeah, baby, you get what you want. Bam! And then I’ll leave a review and I’ll tell all my friends and family, and they will tell theirs, and so on.
So here's the thing. At the end of the day, you can see the numbers stacking up. And this is the true value of the client. Don't be short sighted!!!