How Can You Tell If A Customer Is Still A Customer Or Not?

Yesterday my group coaching call centered on customer lifecycles and how to use customer behavior metrics such as latency, frequency, recency, and monetary value to conduct predictive modeling.

The concept here is that the best way to predict a customer’s future behavior is by their current behavior, especially when their behavior can be compared to the aggregate former customer so you can take preventive action and bring them back into your business.

On the flip side, you can also know in advance when a customer is displaying hyper-responsive tendencies so you can make sure that you put offers in front of this customer fast enough so they don’t go somewhere else to quench their thirst for whatever it is you’re selling.

But the question in the title to this entry is an important one, yet sadly, it’s a question 99% of small business owners never even consider.

To make matters worse most small business owners don’t really understand that their customer list is perishable and that without putting future offers in front of their customer lists they become an accomplice in degrading their business’s #1 asset.

If you’ve never considered the above question then you are currently practicing “The Ostrich Theory of Customer Marketing.”

This is where you operate under the false assumption that your customers are customers for life – unless they specifically tell you they are no longer interested in buying from you.

Just to be clear… Every person who ever bought from you is not the definition of a customer.

So, take a look inside your business and get come clarity about your customer life cycle. Then take it even further and define the latencies between each desired customer action.

Lastly, from now on when customers deviate from the customer life cycle don’t stick your head in the sand; create an irrefutable offer that lures the customer back.

5 thoughts on “How Can You Tell If A Customer Is Still A Customer Or Not?”

  1. Rich, you are so right on! The ads on TV, magazines, newspapers and department stores are barraging my customers right now with reasons to buy their products. All I need to do is use your coaching,pay ATTENTION to this and take ACTION. Yikes! Before they get away!
    Thanks for your common sense training to enable me to see what is right in front of me.

  2. I am surprised there is only one comment posted here. Maybe this is such an obliqui corner, people are not even reading this. It is a marvelous point, well made and well taken. With all the “free” time I have observed, being on the hands of employees in various stores, and no doubt.. probably not as much as a problem with online business people (LOL.. re the Manifesto).. this is certainly an area due some consideration and attention. Thanks.

  3. That made me sit up! Now going madly through all customers I have been in contact with to update them on latest products and promo’s. Have I missed anyone? ( frenetically pulling hair…). I love this stuff! Its like a psychotic chihuahua biting me on the bum if I get too lazy…

  4. I agree with some of what you say but I think you have missed an important point.
    The only customers you have are those that you are providing an ongoing service to. All the rest are at best, potential customers or at worst a lost opportunity. But whatever you classify them as you’ve lost the fact that they are people first.

    If you classify them first as an existing customer, supplier or affiliate and only afterwards as a person (or organisation), then you’re missing the fact that the same person could be all three.
    The same person could also be potentially one of your biggest revenue earners but you would never know it because you originally classified them as a supplier.

    Change the way you think of them and suddenly your list of potential customers for your new product has grown dramatically. Start with keeping information about the people (and organisations) that are important in your business. Only then keep a cross reference (or classification) showing which of those people bought a particular product. Keep a separate cross reference showing which people showed an interest in each product. Over time as you keep adding cross references, you will build a picture of the person which will allow you to target them very effectively with exactly the product that they want.

    Treat them as a person first everybody wins. Treat them as a customer first and lose future business.

    Of course you need computer systems which can cope, but that’s a different story.

  5. testing formatting, plz delete.
    didn’t want to mess up your newer , active posts 🙂

    test of b

    testing bqcite

    “testing bqcite out of arrows, in brackets”
    test of em
    test of i
    test of strike
    test of strong
    test of code


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