Lifetime Value Of A Customer [JT Show Ep 8]

In this video you will discover the latest changes to the YouTube Video Manager and why you must know your Customers’ Lifetime Value.

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Question Of The Week

“How many loyalty cards have you got in your wallet or purse?”

Links

Outsourcing Live Channel — http://www.youtube.com/user/Outsourcinglive 

Outsourcing Live Blog — http://www.outsourcinglive.com/

Transcript

Hi this is Tyrone Shum from Outsourcing Live and welcome to the JT Show. Check it out! 

Welcome to JT Show where you will discover the latest in online video marketing news and some sneaky marketing secrets to help you get more views, likes, subscribes and sales. A big thank you to Tyrone Shum from Outsourcing Live for doing that intro and if you’re looking to Outsource your business make sure you check out his channel and his blog in the links below. I’m JT and let’s get on with the news

This week even more changes have occurred to the YouTube layout. This time it is in the Video Manager section. The changes aren’t massive but I think it makes it slightly easier to use – they seem to have gotten rid of the lot of the clutter. I actually like it — some people have pointed out that you cannot see how many likes and dislikes your videos have and the title of the video is cut off its long. And while it would be nice to have the things – if I am being honest – are not really that important. And now it’s time for the sneaky marketing secret.

This week’s sneaky marketing secret is recognising and knowing the lifetime value of a customer. I’ll use the example of a barber to illustrate this. Say for example a barber charges $20 for a haircut. If he doesn’t realise the lifetime value of the customer you will only see every customer as being just another $20. However if he realises that a customer who is happy with his haircut will probably come back three weeks later and purchase another 20 haircut and each 3 weeks after that then that client is worth around $350 a year. If on average each customer stays with him for 10 years and the lifetime value of that customer $3500.

There are two things that we can learn from this. If we only see every customer is just another $20 and it would be painful to give them a half price haircut. However, if we know that the lifetime value of a customer is $3500 it would make sense to give them $10 off on their very first haircut.

The second thing that we can learn from this is that your best market are those people who have already bought from you before, your existing customer base. These people have already gone through your site sales process once before and already trust that product or service you provide is worth their money. So if the barber only sees each customer as another $20, it wouldn’t make much sense to create a loyalty program where customers get every fifth haircut for free. However again if we know the lifetime value of the customer is $3500 then it makes perfect sense to offer them a loyalty program in order to keep their business instead of having them go off to the barber next door who’s offering half price haircuts for all new customers. Also, if you’re like me most people will probably lose that loyalty card before they get to that fifth haircut anyway meaning that most of the time your customers will probably pay for that fifth haircut anyway.

So remember not to be shortsighted when it comes to your customers — the lifetime value of the income streams that they can provide you with might make it worth giving them some reward for choosing your business. And now it’s time for the question of the week.

This Week’s Question is:

“How many loyalty cards have you got in your wallet or purse?”

Leave your answers in the comments section below and they could be on the next show!

And if you enjoyed today’s show remember to Like it by hitting the “Like” button below or you can subscribe to my channel by hitting the subscribe button up the top and remember to share it with your friends. A big thank you to Tyrone Shum from Outsourcing Live again and remember to check out his channel and his blog in the links in the description below. I’m JT and here are the answers to last week’s question.

59 Comments

  • dereckcelis

    Reply Reply December 20, 2011

    [..YouTube..] @JustinTeohOfficial – Going great mate, nah not snowing just yet! Apparently going to be a warmish type winter!! Loving your videos mate, short, intriguing and impactful! Catch up soon mate, D 🙂

  • dereckcelis

    Reply Reply December 20, 2011

    – Going great mate, nah not snowing just yet! Apparently going to be a warmish type winter!! Loving your videos mate, short, intriguing and impactful! Catch up soon mate, D 🙂

  • dereckcelis

    Reply Reply December 20, 2011

    [..YouTube..] – Going great mate, nah not snowing just yet! Apparently going to be a warmish type winter!! Loving your videos mate, short, intriguing and impactful! Catch up soon mate, D 🙂

  • JustinTeohOfficial

    Reply Reply December 20, 2011

    [..YouTube..] @CharlieVandersluys You’re welcome Charles 😉

  • JustinTeohOfficial

    Reply Reply December 19, 2011

    You’re welcome Charles 😉

  • JustinTeohOfficial

    Reply Reply December 19, 2011

    [..YouTube..] You’re welcome Charles 😉

  • CharlieVandersluys

    Reply Reply December 17, 2011

    [..YouTube..] Hi Justin thanks for you kind comments on my Channel. Charles

  • CharlieVandersluys

    Reply Reply December 17, 2011

    Hi Justin thanks for you kind comments on my Channel. Charles

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    [..YouTube..] @dereckcelis Del my man! How’s it going? Is it snowing just yet in London? Great answer too buddy. Btw, the other week I saw your “How To Do A Video Response” vid had something crazy like 16k + views! Nice one buddy 😉

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    [..YouTube..] @CharlieVandersluys Hi Charles, glad you found it useful buddy! Btw I love the photos you’ve taken on your channel – very nice!

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    [..YouTube..] @Outsourcinglive Hey Tyrone! You’re welcome buddy, had an awesome time filming the podcast with you that day. Looking forward to catching up with you today in Katoomba =)

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    Del my man! How’s it going? Is it snowing just yet in London? Great answer too buddy. Btw, the other week I saw your “How To Do A Video Response” vid had something crazy like 16k + views! Nice one buddy 😉

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    [..YouTube..] Del my man! How’s it going? Is it snowing just yet in London? Great answer too buddy. Btw, the other week I saw your “How To Do A Video Response” vid had something crazy like 16k + views! Nice one buddy 😉

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    Hi Charles, glad you found it useful buddy! Btw I love the photos you’ve taken on your channel – very nice!

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    [..YouTube..] Hi Charles, glad you found it useful buddy! Btw I love the photos you’ve taken on your channel – very nice!

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    Hey Tyrone! You’re welcome buddy, had an awesome time filming the podcast with you that day. Looking forward to catching up with you today in Katoomba =)

  • JustinTeohOfficial

    Reply Reply December 16, 2011

    [..YouTube..] Hey Tyrone! You’re welcome buddy, had an awesome time filming the podcast with you that day. Looking forward to catching up with you today in Katoomba =)

  • dereckcelis

    Reply Reply December 16, 2011

    [..YouTube..] Hey Justin, sweet video. Great way of protraying the LVC of a Customer!! I have 2 main cards I carry with me, a COSTA Coffee card and Starbucks card! I love the Mocha’s! I did have a coffee card when travelling around OZ from Hudsons!! So proves, coffee shops do this well! 🙂

  • dereckcelis

    Reply Reply December 16, 2011

    Hey Justin, sweet video. Great way of protraying the LVC of a Customer!! I have 2 main cards I carry with me, a COSTA Coffee card and Starbucks card! I love the Mocha’s! I did have a coffee card when travelling around OZ from Hudsons!! So proves, coffee shops do this well! 🙂

  • CharlieVandersluys

    Reply Reply December 15, 2011

    [..YouTube..] Some great ideas. Thanks for sharing. charles

  • CharlieVandersluys

    Reply Reply December 15, 2011

    Some great ideas. Thanks for sharing. charles

  • cruisinaltitude

    Reply Reply December 15, 2011

    [..YouTube..] @JustinTeohOfficial Thank you Justin. I’m an airplane geek and I try to share my experiences for those who can’t experience it as I can.I will check out the Playbook; thanks so much for that tip. I’m now a subscriber of your channel so I can keep in touch with the cool stuff you have here. If you need a travel tip, let me know :-).

  • cruisinaltitude

    Reply Reply December 15, 2011

    Thank you Justin. I’m an airplane geek and I try to share my experiences for those who can’t experience it as I can.I will check out the Playbook; thanks so much for that tip. I’m now a subscriber of your channel so I can keep in touch with the cool stuff you have here. If you need a travel tip, let me know :-).

  • cruisinaltitude

    Reply Reply December 15, 2011

    [..YouTube..] Thank you Justin. I’m an airplane geek and I try to share my experiences for those who can’t experience it as I can.I will check out the Playbook; thanks so much for that tip. I’m now a subscriber of your channel so I can keep in touch with the cool stuff you have here. If you need a travel tip, let me know :-).

  • Outsourcinglive

    Reply Reply December 15, 2011

    [..YouTube..] @cruisinaltitude I totally agree Kerwin. It’s been a new learning curve for me too. Wish they would have a guide on how to use this new channel and how to best optimize for it!

  • Outsourcinglive

    Reply Reply December 15, 2011

    [..YouTube..] Hey Justin, thanks for having me on the intro. It’s been great to see what you had in stall on this video today!

  • Outsourcinglive

    Reply Reply December 15, 2011

    I totally agree Kerwin. It’s been a new learning curve for me too. Wish they would have a guide on how to use this new channel and how to best optimize for it!

  • Outsourcinglive

    Reply Reply December 15, 2011

    [..YouTube..] I totally agree Kerwin. It’s been a new learning curve for me too. Wish they would have a guide on how to use this new channel and how to best optimize for it!

  • Outsourcinglive

    Reply Reply December 15, 2011

    Hey Justin, thanks for having me on the intro. It’s been great to see what you had in stall on this video today!

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    Thanks Joe! Love it buddy… and I’m also loving your channel man. You are seriously talented! All the best with your guitar playing

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    [..YouTube..] Thanks Joe! Love it buddy… and I’m also loving your channel man. You are seriously talented! All the best with your guitar playing

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    [..YouTube..] @ClassicalJoeNo1 Thanks Joe! Love it buddy… and I’m also loving your channel man. You are seriously talented! All the best with your guitar playing

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    Hey Kerwin! Thanks buddy – I just checked out your channel! Wow man, nice – I love all of the planes you got on there. If you’re looking to do a show I highly recommend checking out a book called the “YouTube Creators Playbook” – it’s written by YouTube and it shows you a lot of things to help you make a show.

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    [..YouTube..] Hey Kerwin! Thanks buddy – I just checked out your channel! Wow man, nice – I love all of the planes you got on there. If you’re looking to do a show I highly recommend checking out a book called the “YouTube Creators Playbook” – it’s written by YouTube and it shows you a lot of things to help you make a show.

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    [..YouTube..] @cruisinaltitude Hey Kerwin! Thanks buddy – I just checked out your channel! Wow man, nice – I love all of the planes you got on there. If you’re looking to do a show I highly recommend checking out a book called the “YouTube Creators Playbook” – it’s written by YouTube and it shows you a lot of things to help you make a show.

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    Thanks Omar! Just checked your latest video – was really impressed with the sound editing that you did bro. Great work man!

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    [..YouTube..] Thanks Omar! Just checked your latest video – was really impressed with the sound editing that you did bro. Great work man!

  • JustinTeohOfficial

    Reply Reply December 14, 2011

    [..YouTube..] @natgeoteam Thanks Omar! Just checked your latest video – was really impressed with the sound editing that you did bro. Great work man!

  • ClassicalJoeNo1

    Reply Reply December 14, 2011

    [..YouTube..] quick briefingLike!

  • ClassicalJoeNo1

    Reply Reply December 14, 2011

    quick briefingLike!

  • ClassicalJoeNo1

    Reply Reply December 14, 2011

    [..YouTube..] quick briefing
    Like!

  • cruisinaltitude

    Reply Reply December 14, 2011

    [..YouTube..] This was a good show @Justin. Its my first time watching it; I like your format. Still researching a format for my upcoming Travel show so will bear yours in mind.THe new YouTube format is interesting; somethings are cool, its just hard to figure out how to place things so they are optimum for the user.

  • cruisinaltitude

    Reply Reply December 14, 2011

    This was a good show @Justin. Its my first time watching it; I like your format. Still researching a format for my upcoming Travel show so will bear yours in mind.THe new YouTube format is interesting; somethings are cool, its just hard to figure out how to place things so they are optimum for the user.

  • cruisinaltitude

    Reply Reply December 14, 2011

    [..YouTube..] This was a good show @Justin. Its my first time watching it; I like your format. Still researching a format for my upcoming Travel show so will bear yours in mind.

    THe new YouTube format is interesting; somethings are cool, its just hard to figure out how to place things so they are optimum for the user.

  • natgeoteam

    Reply Reply December 13, 2011

    [..YouTube..] Justin!!! Dude! your show is getting more and more Interesting!!! GREAT JOB!i really love the sneaky marketing secret part in this episode about the Customers’ Lifetime Value!

  • natgeoteam

    Reply Reply December 13, 2011

    Justin!!! Dude! your show is getting more and more Interesting!!! GREAT JOB!i really love the sneaky marketing secret part in this episode about the Customers’ Lifetime Value!

  • natgeoteam

    Reply Reply December 13, 2011

    [..YouTube..] Justin!!! Dude! your show is getting more and more Interesting!!! GREAT JOB!
    i really love the sneaky marketing secret part in this episode about the Customers’ Lifetime Value!

  • JustinTeohOfficial

    Reply Reply December 13, 2011

    Lol brilliant! I’ve now got this image in my mind of a cab driver with a free meatball Sub and Starbucks grande latte doing the Dr Evil laugh as he drives around town

  • JustinTeohOfficial

    Reply Reply December 13, 2011

    [..YouTube..] Lol brilliant! I’ve now got this image in my mind of a cab driver with a free meatball Sub and Starbucks grande latte doing the Dr Evil laugh as he drives around town

  • JustinTeohOfficial

    Reply Reply December 13, 2011

    [..YouTube..] @MipoFilms Lol brilliant! I’ve now got this image in my mind of a cab driver with a free meatball Sub and Starbucks grande latte doing the Dr Evil laugh as he drives around town

  • MipoFilms

    Reply Reply December 12, 2011

    How many do I have, none… but i know a cab somewhere with allot of them, *sigh*…

  • MipoFilms

    Reply Reply December 12, 2011

    [..YouTube..] How many do I have, none… but i know a cab somewhere with allot of them, *sigh*…

  • drychalice

    Reply Reply December 12, 2011

    [..YouTube..] Very good video, keep it up.Good luck.

  • JustinTeohOfficial

    Reply Reply December 12, 2011

    Thanks for your kind words!

  • JustinTeohOfficial

    Reply Reply December 12, 2011

    [..YouTube..] Thanks for your kind words!

  • JustinTeohOfficial

    Reply Reply December 12, 2011

    [..YouTube..] @drychalice Thanks for your kind words!

  • drychalice

    Reply Reply December 12, 2011

    Very good video, keep it up.Good luck.

  • drychalice

    Reply Reply December 12, 2011

    [..YouTube..] Very good video, keep it up.
    Good luck.

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