How Much Is 1 New Costumer Worth To a Potential Clients?

You sit down with them and ask. It's different for every one.

I believe you need to ask them. Even in the same industry this could vary. Something like this....

"How often would you say your average client visits you?"
-About every two weeks.

"How many months on average do they stay a client?"
-Most of my clients I have had for over 2 years

"Great let's use the 2 years. So your average client visits you 52 times, right? Every two weeks for two years."
-Yeah that sounds right.

"How much do they normally spent per visit"
-Most of my clients are $75 per visit.

"Wow that is $3,900 in revenue from every single client. No wonder you want more. How much of that would you say is profit?"
-Half?

"Let's just call it $2,000 or $1000 per year to keep it simple."
-ok

"Before I came over I checked and on average there are 300 people each month looking for chiropractors"
-Wow that's a lot of people.

"I know that could be $300,000 in profit a year if we could get in front of them all. And that is just in one month. Think of that times twelve."
- That sounds really good.

"I agree but let's not get ahead of ourselves. I don't want to make promises that are unbelievable. So out of that 300 per month how many do you think you could get as clients if we could get you in front of them?"
-I don't know 100?

"Let's be really conservative. Let's say 10. You think 100 is possible so 10 should be easy, right?"
-Yeah 10 should be really easy.

"That is $10,000 a year in profit from just doing it for one month. For 12 months that would be $120,000 a year. How does that sound?"
- That sounds really great.

"And we know the potential is much higher. After all you thought 100 a month was possible, right?"
- Yes I did.

"Doctor I think we can make this a reality. It will take a bit to ramp up and I am not Google so I can not guarantee you the number one spot. What I can do is use my knowledge of how Google works to get you in front of more prospects. How does that sound?"
-That sounds great. But how much will this cost?

"I'm glad you asked. We offer several packages. (pull out sheet and lays in front of client). Based on what you told me I think the gold or silver package would be best. The gold package is only $999 per month. And if you would like to push it into over drive we can add on the $1499 quick start package. That would be $2,498 this month and $999 going forward."
- I don't know if I have the budget for that.

"Think back to what we were talking about a few moments ago. If conservatively you would gain 10 clients a month and they are each worth $1,000 a year just one client per month would pay for this."
-I see your point but what if it doesn't work?

"How about this. If you are willing to do the quick start and agree to trying this for 3 months I will make this guarantee. Give this 3 months. And if at the end of 3 months we have not helped you gain 30 clients, which according to your numbers would be almost 10 times as much as this cost, we will give you a full refund. The risk is 100% on us. Would you agree to do the quick start and the first 3 months if I guaranteed you 30 knew clients?"

Both of the posters above are definitely correct. Just make sure that you are figuring out the lifetime value of the customer. Most business owners do not think of their customers in this way so it may take some probing to find out but it is very important for both of you to know.

Ditto...

If you're just curious (for any industry really) a good place to start is trying to search industry related websites or a simple search like "value of a new chiropractic patient" in big G.

I was going to start a post asking but now is as good a time as any - what are the best methods to track the number of clients acquired? Coupons and track-able phone numbers make sense, any other methods?

As suggested, just ask. Keep in mind that prospects are under more time pressure than ever before. They don't want to sit down for standard client interviews as much as they would in the past.

If you are going to target chiropractors, for example, go beyond keyword research. Find out as much as you can about their industry. Know some average figures before the meeting. It will show them you are prepared, know their industry and won't waste their time.

For example: "Mr. Prospect, the industry average for the length of time a chiropractic patient stays with the same office is 5 years. What is your experience?

"And they spend $1500 a year on average, is that about right? "

...etc.

Here is a simple calculator:

Customer Lifetime Value Calculator | Standout Local



Here are some industry averages including chiropractic:

"For instance, the lifetime value of a Chiropractic patient is $7,500 according to Billing Precision, LLC. The figure is derived from an annual patient value of $1,500 and the current average of 5 years that a patient remains with the practice.


For a Dental practice, the lifetime value of a patient is $22,000. That is according to Derek Naylor, a consultant on Dental Practice profitability.


A supermarket customer’s lifetime value runs from $179,665 to $318,831 (source: Customer Lifetime Value, V. Kumar, University of Connecticut). Any wonder why they are so eager to have you carry one of those “customer loyalty” cards that give you discounts for shopping with them?"


- See more at: Lifetime Value of a Customer





Here is an example of industry stats from Medline:

"Data for 2550 chiropractic patient visits were recorded. Care for low back, head and neck pain accounted for almost three quarters of visits.

Extremity conditions and wellness care accounted for approximately half of the remaining visits. Spinal and soft tissue examinations were the most frequently reported diagnostic procedures (80% and 56% of visits, respectively), and high-velocity spinal manipulation techniques were the most frequently reported therapeutic procedures (almost 85% of visits).

Rehabilitation exercises, thermal modalities, electric stimulation, and counseling/education/self-care were each performed during approximately 25% of visits. Approximately 85% of patients seen were self-referred, whereas only approximately 5% came from medical physicians.

Approximately 35% of visits had an expected source of payment directly from the patient. Approximately 80% of visits ended with a plan for the patient to return at a specified time."

https://www.ncbi.nlm.nih.gov/pubmed/16326233




Here's a snapshot of a chiropractic practice. It's interesting that Palmer College is the number one college for chiropractic medicine in the US. That's the way it was in 1987 when I organized about 40 chiropractors in one Midwest city into their own advertising association.

http://www.dynamicchiropractic.com/m...e.php?id=51030

It all depends on, how much a client pays per visit and how often they make a visit. I don't know the rates for chiros but think to yourself...how often does a client need to go to a chiro? Some need to go more than others. If one has had an accident, they will see a chiro way more than, someone that has not had one.
Suppose a chiro charges $599 for a service and a client goes for that service 4 times a year, then that is the value per year for that client. Again, it all depends on the rate and how often clients go and see them.

The life time value of customers, for chiros should be pretty good.

And when they tell you they don't know.............. either run or charge an arm and a leg to consult them fully

Also be wary of your own spelling. You wrote costumer instead of customer...that can make a huge difference when doing keyword searching, etc.

The value of a customer will vary enormously. I have some worth potentially thousands over a long time period and some worth $10 once.

I just saved that q/a sales pitch that was so epic and gonna use it to land a jobn on monday!