The Lifetime Value (LTV) of a Customer is Important. So Using the Supermarket “Lost Leader” Concept to Grow Your Provider Business Is Essential.
So often a course fails due to low numbers. You have nine people signed up and you need ten to be viable. So you send nine people away unhappy because you ignored Lifetime Value.
Often it feels like this is the only way forward. It makes economic sense. OR does it?
What if the course is short and you lose a few £hundred .. but is that the end of the world? Short term economics says we should always make a profit. After all times are hard.
But it often makes sense to lose money to make money. Look longer term. How many years will the student be with you and what is their lifetime value?
For example a small group of access students are all likely to spend the next 3 years with you on a degree course if they successfully complete the Access course. Over the years they will be worth £7-9k in fees alone. So maybe £21-27k over the years. So why worry about losing a few £00 between the group now?
Think what it will cost over the next three years if you don’t take them now.