Look Beyond the First Sale Most marketing conversations focus on customer acquisition cost, the amount it costs to gain a new customer. If it costs $25 in advertising to generate a new customer, many florists immediately wonder whether that’s too expensive. The better question is: What is that cus- tomer actually worth? That’s where customer lifetime value
becomes one of the most important financial metrics in your business. Imagine a customer spends $90 on
their first arrangement. If they order flowers three times a year for birthdays, anniversaries, Mother’s Day, sympathy occasions or holidays, that same cus- tomer may spend $270 annually. If they remain loyal for five years, they’ve gener- ated $1,350 in revenue. If they stay with your shop for 10 years, they may well have spent more than $2,500 — and that doesn’t include the value of referrals to friends, family members or coworkers. Don’t mistake the first order for the
finish line. It’s simply the introduction. Customer retention deserves as much attention as customer acquisition. Improving your repeat purchase rate by even a small percentage can significantly increase profitability because repeat customers typically cost far less to serve than first-time buyers. They already know your brand, trust your quality and require less convincing to place an order. Instead of constantly chasing new
business, successful florists build systems that encourage customers to return. A thoughtful follow-up email, a birthday reminder, a loyalty reward or simply deliv- ering an exceptional customer experience can produce returns that continue for years. Marketing dollars should not only be measured by the orders they generate today but also by the relationships they help create tomorrow.
The Cost of “Renting” Customer Relationships This is where the difference between “renting” and owning customer relation- ships becomes important. Many marketing channels are effec-
tive at generating immediate sales. Paid advertising, sponsored social posts, wire services and online marketplaces all have a place in a florist’s marketing strategy. The problem arises when every
Marketing is often measured by how many new orders come through the door. But here's an important question: Are you acquiring new but one-time orders, or are you embarking on a continuing customer relationship?
marketing decision is focused solely on generating the next order. Businesses that focus exclusively
on acquisition often find themselves continually spending money to replace customers who could have become repeat buyers. Every new sale requires another investment. Over time, rising acquisition costs can place pressure on profit margins and make growth more expensive than it needs to be. Think of it like leasing a building. As
long as you keep making payments, you have access. Stop paying, and the access disappears. Customer acquisition can work much the same way. Businesses that rely exclusively on paid channels often find themselves trapped in a cycle of rising advertising costs while profit margins continue to shrink. Meanwhile, businesses that consistently build direct relationships gradually reduce that dependence.
Own the Customer Relationship When customers willingly subscribe to your email list, follow your social chan- nels, join a loyalty program or simply remember your business first when flowers are needed, you’ve created something much more valuable than a single transaction. Positive experiences increase the likelihood they’ll return. Helpful emails keep your business top of mind. Outstanding deliveries cre- ate opportunities for word-of-mouth referrals. Over time, these relationships
become marketing assets that con- tinue producing revenue long after the original advertising expense has been forgotten. That’s the power of customer lifetime value.
Measure What Really Matters It’s easy to become distracted by mar- keting reports filled with impressions,
clicks, likes and website visits. Those numbers have value, but they rarely tell the complete financial story. Instead, measure whether your mar-
keting is creating customers who return.
How many first-time buyers placed a second order?
How many new customers joined your email list?
How many became repeat holiday shoppers?
How many referrals came from existing customers?
How much revenue did last year’s new customers generate this year?
Those answers tell you whether your
marketing is building long-term value or simply purchasing short-term sales.
Marketing Is an Investment The strongest floral businesses under- stand that marketing isn’t simply about generating today’s order. It’s about cre- ating tomorrow’s loyal customer. Every decision should move someone one step closer to becoming a repeat buyer who chooses your shop automatically for life’s celebrations, milestones and moments of sympathy. When you begin measuring mar-
keting through an understanding of customer lifetime value instead of indi- vidual transactions, spending decisions become much clearer. Because the florist who owns the
customer relationship builds a busi- ness that becomes stronger with every satisfied customer. The florist who continually rents the customer connec- tion simply starts over every day. Invest in loyalty and enjoy watching your initial efforts bear fruit.
Derrick P. Myers, CPA, CFP, PFCI, is the president of Crockett, Myers & Associates, Inc.
The magazine of the Society of American Florists (SAF) 35
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