If you look online, you’ll find all sorts of information about working out the lifetime value of a client. The lifetime value calculates how much repeat business you can expect from that client. Armed with this knowledge you can work out how much you can afford to spend on your marketing and customer service to find and retain that client. All very fascinating and important stuff.
But a conversation this afternoon with a long-term client has made me realise there’s another side to this coin. As copywriters and website developers, we deliver long-term benefits to our clients and the lifetime value of our services is significant.
A while back, we started working for a particular client and, amongst other projects, we worked on a series of sales letters and emails. Four years later, the original company was bought out by a large organisation. But those letters and emails were still in daily use. They were used to respond to every sales enquiry. I have no way of knowing how many times they have been used. I don’t imagine the client knows either. But it clearly demonstrates the value of investing in professional services.
This value doesn’t just stop at copywriting, either. If you’re baulking at the price of a new website, for example, take a moment to think how that pans out over the life of your site. Every time someone finds and visits your site, it’s delivering value. It’s still earning its keep years after you’ve paid for it.
How many sales does your website generate? How much revenue has it brought in? Work that out against the price you paid for it. This brings me back to my old favourite saying…
What’s the difference between price and cost?
If you think the price of buying professional services is too expensive… consider the cost to your business if you don’t.
And while you’re at it, have a go at working out the lifetime value of that service.