Tag: Peter Fader

What Is Customer Equity? 💰

Posted on by brianjpombo

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Thoughts on Lifetime Customer Value from Peter Fader’s book, Customer Centricity.

Amazon-Proof Your Business➡️ https://brianjpombo.com/amazonbook/

Transcription

What is customer equity?

Hi, I’m Brian Pombo, welcome back to Brian J. Pombo Live.

Brought to you every day by AmazonProofBook.com. The website you go to to get your own free copy of, 9 Ways to Amazon Proof Your Business. It’s my own book on how to build a strategy long term strategies in order to defeat your competition in every way possible.

And so it’s, 9 Ways to Amazon Proof Your Business, free copy AmazonProofBook.com.

Now let’s talk about customer equity. What is customer equity?

Well, I really liked the definition put out by this book. This is Peter fader, customer centricity. It’s one of my favorites, it’s a really good read short read on if you’re interested in learning more about strategy, especially marketing strategy when it comes to focusing more from a customer perspective.

And in this is from chapter chapter three, the whole chapter is on customer equity. And here’s how he defines a customer equity is the sum of the customer lifetime values across a firm’s entire customer base.

Okay, so what’s that mean? So customer lifetime value, we’ve discussed that before. That’s the basic value that you have from a customer over the lifetime. Now, you may have different types of customers. And so their value is going to be significantly different depending on what type of customer they are, what market you’re pulling from, what products or services that they specify or stick to, it may be a demographic change, or what have you, but you’ll have different customer bases.

And from each of those you’ll have, you’ll have a basic customer lifetime value. Meaning this is this is what they’re bringing in versus how much they cost for their entire time that they’re with you.

And obviously, you get highs and lows, depending on where you’re at in the business and and how broadly, you’re defining that customer. But you take all those customer values, and you smash them all together, you pull, pull the sum from that, and that’s customer equity, that’s your overall customer equity.

That’s the value that you have from your entire customer base. It’s what you’re talking about. That’s what customer equity is. And it’s a term that doesn’t get tossed around too often that I found.

Oftentimes, when I’m talking to new clients, they have no idea. Oftentimes, I mean, if you don’t even know what your customer lifetime value is, that’s pretty typical. Don’t worry about it.

What you got to do though, is you might want to figure out some of these ideas, because it allows you to know how much advertising to spend, how much where you should be advertising and everything else comes from customer, lifetime. valuing customer equity gives you very much a larger view of where you’re going.

And it’s really good to take your customer equity and map it out over quarters and years to really find out whether you’re growing or not. Because if you have growing customer equity, especially if you’re looking at ever possibly selling your business, having a high customer equity value is going to attract the right type of buyer.

And it’s going to determine whether your business continues growing beyond you or whether it fizzles out.

Because if you don’t have the right values, that attract somebody that is going to build your business, you’re going to get someone that doesn’t know how to build a business and they’re going to run into the ground now maybe they’ll give you the right price and you don’t care what happens to your business.

But if you’re anything like me, and I think most business owners, your business is like your own child, you know you don’t want you don’t want to send it off to to to some horrible person that isn’t going to take care of them if you’re not able to.

So that’s another way of looking at customer equity. That’s the way I like to look at customer equity. Like I said, this is a pretty good book, Customer Centricity by Peter Fader and also my book, 9 Ways to Amazon-Proof Your Business.

We’ll be back tomorrow with another either strategy, tactic or principle that you could use directly in your business. You have a great night. In the meantime, get out there and let the magic happen.

Your Company is Stuck, Because Your A Selfish Jerk

Posted on by brianjpombo

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http://DreamBizChat.com

Your company is stuck because you’re a selfish jerk.

Hi I’m Brian Pombo welcome back to Brian J. Pombo Live.

Today we’re going to be discussing how selfishness might be getting in the way of you growing your company from where it’s at right now. Even if you’re still in a growth mode, sometimes you can’t quite grow faster or you might be going a little bit backwards or you might be kind of stuck one way or the other.

If you’re wanting to grow faster.

One of the big pieces might be you and it might be in an area that you’re not quite aware is there.

Now this comes back to attitude.

I was having this discussion with some very young business owners. This was a couple out of Canada and I was working with them on their business and talking to them about some of the things that might hold them back.

And I don’t know if this is holding them back or not, but a lot of it comes down to.

First one on one posture, a term that’s used quite often. I’m not talking about how they hold themselves, physically, but how they hold themselves basically their energy in front of others and that posture, that attitude can really make a huge difference.

It depends and you could see it manifest itself in the wrong way.

When a person comes off too needy, when a person comes off too excited, when a person comes off like they’re trying to make a sale type of deal, and we’ve all been in front of those people who are just trying a bit too hard to get on our good side.

Or to get us to purchase something or to try something out or whatever it is, selfishness is what is what we’re feeling.

When you’re feeling that from someone else, you’re feeling someone who’s thinking about themselves, someone who’s trying to hit the bottom line, they’re trying to get the next number and you’re just another one in the long line up.

Take that aside and think about the situations that you have with people that you enjoy being around the most.

I guarantee the people you enjoy being around the most are the least selfish.

These are the people that spend more time talking about you more time, wondering where you’re looking at going and then possibly helping you to get there through their products and services, but it’s based on you, not on them.

It’s less selfish.

Now that’s a one on one situation, but you can also see this happening in a large scale with most companies. When they really start moving along, eventually selfishness creeps in. It creeps into the pure bureaucracy of the company and they start focusing more on more on what the company’s needs are and where the company wants to go and less and less on anyone that could possibly be considered a customer.

Even someone that’s not a traditional customer.

Sometimes your vendors, sometimes your partners, if you’re not focused on them and where they’re going, that could be slowing you down because all it takes is a little bit of extra time and a little bit of extra effort to consider their point of view and all of a sudden everything changes because the attitude changes.

People get a different vibe off of you and your company and your company culture and everything changes.

I’m going to give you an example of this. This was a book I had read a number of years ago, but really enjoy it and it’s one that I’d love to recommend to others out there, and if you’re somebody that I work with, and I haven’t mentioned this to you, let me mention it to you right now.

Customer Centricity by Peter Fader.

It’s a very short book, tiny little book, large print, and has some amazing gold nuggets.

He talks about the concept of being customer centered, not from the, “customer’s always right.” Because honestly, I mean we should all know that’s a lie.

The customer is not always right and you’re going to be in a big trouble if you try and please every customer that comes to you, but like he says, I’m here. The right customer is always right, meaning the best customer, the people that you know are the ones that you want to be with over the long haul.

Those are the ones that you have to pay attention to. Their point of view. Otherwise you’re ruining your entire business. That’s what customer centricity is all about.

This a great book that specifically deals with the data involved and paying attention and tracking where your customers are at, whether you have a large business or a small business, this is a huge deal, but if you think of the philosophy behind it, it will change everything that you do and how you handle things, and when you go into something that you would normally consider a sales meeting, those type of one on one situations.

You should be spending more time asking them about what their needs and where they’re looking to go, and then you’ve got to get good at seeing where your products and services can help them and come up with new products and services to be able to help them.

Here’s a, here’s a great line out of out of this book. He says, customer centricity is a strategy to fundamentally align a company’s products and services with the wants and needs of its most valuable customers. That strategy has a specific aim, more profits for the longterm.

In the end, it’s a selfish need that you’re trying to get, but you’re going to help more people, as we’ve talked about before, one of the greatest sales tips of all time. The more you help people, the more you get back and as a car karma, call it karma or what have you. It’s a law of the universe.

It’s just how it works.

You do it with the right energy and it can be from your own selfish intent. That’s fine. As long as you do it with the proper energy and you’re actually listening to what they’re saying and doing your best to get them what they want.

If you’re doing that, it’s okay. If you get a little bit of gratification in the long run, that’s all right. That’s what, that’s what freedom is all about really, if you think about it, so here’s customer centricity.

Great book, great concept more than anything else.

If you can realize that a lot of what’s holding your company back is you’re not putting enough emphasis on first finding out what the customer wants and secondly, doing everything you can to get that in front of them. You do that, you can turn around any company.

Honestly, it seems to be the number one thing that I run into when I’m going into companies that are having a tough time getting past their initial successes.

Hopefully that’s helpful for you. If you’d like to get past your initial successes. I only work with a successful companies, but if you’re interested in talking about some of these concepts, go to dream biz chat.com especially if you’re on the self-reliance field and a meaning you have products and services that help people become more self reliant.

Go to DreamBizChat.com the link is in the description. Hope you had a great one today and we’re gonna catch you tomorrow. Talk about similar concepts. Have a great night and get out there and let the magic happen.