What's a Customer Really Worth to You? - Customers
Construction Equipment Distribution magazine is published by the Associated Equipment Distributors, a nonprofit trade association founded in 1919, whose membership is primarily comprised of the leading equipment dealerships and rental companies in the U.S. and Canada. AED membership also includes equipment manufacturers and industry-service firms. CED magazine has been published continuously since 1920. Associated Equipment Distributors
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SECTION: Customers

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What's a Customer Really Worth to You?

By Ryan Condon, David Semb, and Jeff Lefebvre

Article Date: 09-01-2012
Copyright(C) 2012 Associated Equipment Distributors. All Rights Reserved.


Calculate their lifetime value to your business, and you’ll work harder to never let them go.

A study conducted several years ago found that the lifetime value of a Taco Bell customer amounts to approximately $11,000. For Taco Bell, the profit from a single $5 exchange for a taco, soda, and cinnamon crisps is less important than the long-term benefits of fostering enduring customer relationships. Many companies fall into the trap of thinking of customers as purely short-term individual transactions, but a closer look at customer lifetime value, or LTV, reveals that spending the time and effort to develop long-lasting customer relationships often yields greater profits over the long term.

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http://www.prisim.com/business-simulation-overview/


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