What is the is a power in customer life time value.
Using numbers in the right way in your business is a powerful way to
- Firstly, give you insight
- Secondly, make great decisions
- Thirdly, reduce anxiety
- Also, to provide clarity
More importantly help you make money, be sustainable and prosper
In last week’s vlog I introduced the topic of customer lifetime value, and
- Firstly, looked at why customer lifetime value is an important measure
- Secondly, went through the steps for calculating your own
- Finally, illustrated with different businesses.
There are a lot of important factors to consider when running a small business. But one of the most important is how you calculate and understand the power in customer lifetime value (CLV) and segmenting your customers . CLV is a measure of how much profit a company can expect to make from each customer over the course of their relationship with that company.
Knowing your CLV can help you make smarter decisions about things like what products to offer, what marketing campaigns to run, and how much to invest in acquiring new customers. So, if you’re looking for ways to increase your profits, it’s definitely worth taking the time to understand and calculate your CLV.
If there’s one thing that all business owners can agree on, it’s that customer retention is key to a successful company. It costs six to seven times more to attract a new customer than it does to keep an existing one. What can you do to make sure your customers stick around? Increasing customer lifetime value (CLV) is a great place to start. CLV measures the total amount of revenue a customer brings in throughout their entire relationship with your company. By increasing CLV, you’re not only increasing profits today, but you’re also laying the groundwork for future success. So how do you go about boosting CLV? Check out these tips!
Conclusion
Customer lifetime value is a powerful number. The power in customer lifetime value is enhanced by segmenting your customers and understanding their CLV you can better allocate resources to keep the most valuable ones happy. It also arms you with information about whether or not a new customer is worth acquiring and how much you should be spending on them to get them.
Finally, it’s important to set up your business in order to release this power by tracking behaviour, identifying key segments, and allocating resources accordingly. Watch my video for more detail on each of these points and subscribe to my channel so that you can stay informed.