Lifetime Value - What Your Client Is Really Worth
Tuesday, March 22, 2016 | Jeff Davis
I am still amazed at how many business owners are stumped when I ask them, "what is the lifetime value of your average client?" It seems like a basic management metric that everyone would know off the top of their head.
They may know the average monthly rate members pay, but thinking about the lifetime value of a client seems foreign to many. It shouldn't be. I promise your competitors are thinking about lifetime value. For many it is the driving force for fighting to convert your clients into their clients.
We have built a calculator on our website to help you determine the lifetime value of a client. The example below is based on YMCAs, but anyone is free to use it.
After talking to dozens of YMCAs, we have determined that the "average" monthly membership rate at a YMCA is $53. And the "average" YMCA member stays for 7.5 years. So now you know that the "average" YMCA member is a walking, talking $4,770 resource. (To figure out what your member is worth, visit the actual calculator here.) So what would you do to enroll 10 new members this month? Or 120 new members over the next 12 months?
Hopefully you are saying "I would do almost anything!"
Now you know why Thrive has revolutionized its ySite program. For several years now we have been known as the premier provider of process driven websites for YMCAs across the country.
"What do you mean Process Driven?" Process driven is another way of saying feature rich. Our websites offer a powerful, yet flexible suite of features that work for single location Ys or Ys with a dozen or more branches. We offer the very best calendars, branch micro sites, tools for highlighting programs by branch, event listers - all the components necessary to enroll new members and keep current members actively engaged.
But now our ySite program has evolved into the next generation ySite. The Membership Machine.
As you can see from the above calculator, if a single member is worth $4,770, enrolling ten new members per month for one year is worth $572,400.
Is your current website adding ten new members per month? Probably not.
Which is why Thrive has leaped ahead with its ySite program. Once process driven, our ySites are now revenue driven. We have added more than a dozen new tools that are designed to funnel site visitors into sales leads for your YMCA. The Membership Machine. The Silent Salesman, Countdown timers (adding a sense of urgency) and Alert Bars, Membership Surveys, the yBox, Automated Drip Email Programs, the yVite and Support Badges are some of the tools now baked into the ySite, designed simply to increase your sales leads.
If you want to know how a Thrive ySite can help you add an additional $572,400 in new revenue, let us know. Send me an email or click the Contact Thrive button below.
If you want to know, it's $17,025. The average lifetime value of our clients.