jsinger - 9:37 pm on Jul 8, 2011 (gmt 0)
Good question. The great fallacy of the 1990s dot com bubble era was overvaluing "the lifetime value of a customer." Firms would raise millions from VC cash and blow it all on a couple of Super Bowl ads. (there was also the "first mover" advantage LOL). You wonder if some of those 90s geniuses, and their investors, ever ran a lemonade stand. Customers are pretty transient.
We're in a very, very sticky field. And I think we do a great job with customer service. Our prices are fair. Yet after a decade, more than 80% of our current sales are to first-timers. Probably a lot more.
Repeat customers are vital. They buy a lot. But you always have to be looking for new customers.