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Know Lifetime Customer Value to Inform Your Marketing

Posted by Tom Smith on Fri, Nov, 08, 2013 @ 06:11 AM

lifetime customer value

 

 

 

 

 

 

Ferrellgas offers service you can count on?  Not so much!

I received two pieces of mail from Ferrellgas in the last two weeks. They supplied propane to my in-laws for 40(?) years.

What was their lifetime customer value to Ferrellgas?  Based on the bills, $30,000 to $40,000. I seriously doubt Ferrellgas ever knew what my in-laws lifetime value was to them.  If they did, they sure dind't care.

My in-laws have both passed away and we are selling their home. When I last spoke to Ferrellgas, we needed to have the tank filled so we'd have heat while the inside of the house was being painted, we were told it would be a week and there would be a $100 emergency delivery fee.

We explained the situation but to no avail. As such, we went with a propane provider that was less expensive, would deliver the same day and didn't charge us an emergency delivery fee.

I received a $16.67 bill from Ferrellgas last week with no explanation. This week I received a postcard asking if we were ready for a fill and offering us a special gallon rate if we refilled the tank by a certain date.

Apparently Ferrellgas failed to make a note of our call in their CRM system when we needed their help and they lost our business.

According to the card, Ferrell gas has the "guaranteed lowest price for tank owners" and we can "earn up to $75 for new customer referrals."

Great ideas guys, but not after you've already flushed a 40-year relationship down the toilet with a less than helpful attitude.

Granted, I didn't offer Ferrellgas significant lifetime customer value since we're trying to sell my in-law's house. Nonetheless, you would think a 40-year pre-existing relationship would have generated sufficient revenue to justify some special consideration.

Even if you're only going to have one or two transactions with a customer, treat them as if they'll be customers for life. No telling who they might refer if you do.

No telling who they may dissuade from using your service if you don't. Besides, it's a good habit for you and your employees to have -- especially if you don't have a CRM system to track your relationships and revenue.

Does your company measure lifetime customer value?

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Tags: customers for life, customer retention, referrals, lifetime customer value