There’s this concept in business we call “return on investment” which I’m very familiar with, but I am having a difficult time applying to my own business. If you were to ask me what the percentage return on my investment has been, I would give you a blank stare. I don’t know. All I know is that I love creating art and that I am making money. I know that I do invest in my customers. Being a person who likes to give with no expectations on a “return”, I simply don’t care to calculate the ROI.
There’s another concept I also find challenging - calculating the annual value of a customer. Why? All that should matter is that we find each and every customer as a valuable customer, right? No matter if they spend $1 or $1,000 each month - it shouldn’t matter. That $1-a-month customer could be referring the $1,000-a-month customer...
Do you calculate the ROI of your customers? Why or why not?
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