Lifetime Value Of A Customer [JT Show Ep 8]

In this video you will discover the latest changes to the YouTube Video Manager and why you must know your Customers' Lifetime Value.

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Question Of The Week
"How many loyalty cards have you got in your wallet or purse?"

Links
Outsourcing Live Channel -- http://www.youtube.com/user/Outsourcinglive
Outsourcing Live Blog -- http://www.outsourcinglive.com/

Transcript
Hi this is Tyrone Shum from Outsourcing Live and welcome to the JT Show. Check it out!

Welcome to JT Show where you will discover the latest in online video marketing news and some sneaky marketing secrets to help you get more views, likes, subscribes and sales. A big thank you to Tyrone Shum from Outsourcing Live for doing that intro and if you're looking to Outsource your business make sure you check out his channel and his blog in the links below. I'm JT and let's get on with the news

This week even more changes have occurred to the YouTube layout. This time it is in the Video Manager section. The changes aren't massive but I think it makes it slightly easier to use - they seem to have gotten rid of the lot of the clutter. I actually like it -- some people have pointed out that you cannot see how many likes and dislikes your videos have and the title of the video is cut off its long. And while it would be nice to have the things - if I am being honest - are not really that important. And now it's time for the sneaky marketing secret.

This week's sneaky marketing secret is recognising and knowing the lifetime value of a customer. I'll use the example of a barber to illustrate this. Say for example a barber charges $20 for a haircut. If he doesn't realise the lifetime value of the customer you will only see every customer as being just another $20. However if he realises that a customer who is happy with his haircut will probably come back three weeks later and purchase another 20 haircut and each 3 weeks after that then that client is worth around $350 a year. If on average each customer stays with him for 10 years and the lifetime value of that customer $3500.

There are two things that we can learn from this. If we only see every customer is just another $20 and it would be painful to give them a half price haircut. However, if we know that the lifetime value of a customer is $3500 it would make sense to give them $10 off on their very first haircut.

The second thing that we can learn from this is that your best market are those people who have already bought from you before, your existing customer base. These people have already gone through your site sales process once before and already trust that product or service you provide is worth their money. So if the barber only sees each customer as another $20, it wouldn't make much sense to create a loyalty program where customers get every fifth haircut for free. However again if we know the lifetime value of the customer is $3500 then it makes perfect sense to offer them a loyalty program in order to keep their business instead of having them go off to the barber next door who's offering half price haircuts for all new customers. Also, if you're like me most people will probably lose that loyalty card before they get to that fifth haircut anyway meaning that most of the time your customers will probably pay for that fifth haircut anyway.

So remember not to be shortsighted when it comes to your customers -- the lifetime value of the income streams that they can provide you with might make it worth giving them some reward for choosing your business. And now it's time for the question of the week.

This Week's Question is:
"How many loyalty cards have you got in your wallet or purse?"
Leave your answers in the comments section below and they could be on the next show!

And if you enjoyed today's show remember to Like it by hitting the "Like" button below or you can subscribe to my channel by hitting the subscribe button up the top and remember to share it with your friends. A big thank you to Tyrone Shum from Outsourcing Live again and remember to check out his channel and his blog in the links in the description below. I'm JT and here are the answers to last week's question.

Category:

Education

Tags:

• lifetime value of a customer
• customer lifetime value
• justin teoh
• jt show
• tyrone shum
• outsourcing live

[CharlieVandersluys]

Hi Justin thanks for you kind comments on my Channel. Charles

[JustinTeohOfficial]

@CharlieVandersluys You're welcome Charles ;)

[dereckcelis]

Hey Justin, sweet video. Great way of protraying the LVC of a Customer!! I have 2 main cards I carry with me, a COSTA Coffee card and Starbucks card! I love the Mocha's! I did have a coffee card when travelling around OZ from Hudsons!! So proves, coffee shops do this well! :-)

[JustinTeohOfficial]

@dereckcelis Del my man! How's it going? Is it snowing just yet in London? Great answer too buddy. Btw, the other week I saw your "How To Do A Video Response" vid had something crazy like 16k + views! Nice one buddy ;)

[CharlieVandersluys]

Some great ideas. Thanks for sharing. charles

[JustinTeohOfficial]

@CharlieVandersluys Hi Charles, glad you found it useful buddy! Btw I love the photos you've taken on your channel - very nice!

[dereckcelis]

@JustinTeohOfficial - Going great mate, nah not snowing just yet! Apparently going to be a warmish type winter!! Loving your videos mate, short, intriguing and impactful! Catch up soon mate, D :-)

[JustinTeohOfficial]

@Outsourcinglive Hey Tyrone! You're welcome buddy, had an awesome time filming the podcast with you that day. Looking forward to catching up with you today in Katoomba =)

[cruisinaltitude]

@JustinTeohOfficial Thank you Justin. I'm an airplane geek and I try to share my experiences for those who can't experience it as I can.

I will check out the Playbook; thanks so much for that tip. I'm now a subscriber of your channel so I can keep in touch with the cool stuff you have here. If you need a travel tip, let me know :-).

[Outsourcinglive]

@cruisinaltitude I totally agree Kerwin. It's been a new learning curve for me too. Wish they would have a guide on how to use this new channel and how to best optimize for it!