Transform Your Business and Maximize Profits by Focusing on This Customer Retention Factor

Whatever business you're in, repeat customers are your best and most profitable customers. That's true if you're a retailer or restaurant, or a franchisor looking to expand your locations. For restaurants and retailers, it means re-defining success. With so many options available to customers, year-over-year sales growth is too short-term to just the overall health of a business. What really matters is repeat business from customers, what is called Guest Lifetime Value (GLV).

Guest Lifetime Value 

In its e-book, "Guest Lifetime Value, The Real North-Star Metric for Restaurants," Olo defines it as the revenue generated from each guest throughout their relationship with a brand. It estimates that the top 5% of GLV drives about 30% of restaurant revenue. Repeat guests over the previous six months ordered 2.2 times more than the average guest! Earning a customer's loyalty will result in more repeat business and higher checks.

Read the full article from Entrepreneur here.