Customer Lifetime Value (CLTV) is a vital metric to consider in any marketing plan for success: it refers to the total revenue a company expects to earn from a customer over the duration of the business relationship with them.
Companies use customer lifetime value to identify the segments that are most relevant to them. The longer a customer continues to purchase, the higher their value.
Customer Lifetime Value is a very important
Indicator when it comes to analyzing and measuring a company’s growth. With this metric, it is possible to measure the time it takes to recover the cost of acquiring a new customer, the cost of sales, and the cost of marketing.
Analyzing the lifetime value of your customers will make sense if you also take into account another key metric: Customer Acquisition Cost (CAC) . This figure indicates the investment that must be made to acquire new customers. The higher the CLVT, the more profitable the business will be.
Example: If a restaurant list of taiwan consumer email customer’s CLVT is $100, but the money needed to get it is $150, the business could be losing money.
According to HubSpot , acquiring new customers can be between 5 and 25 times more expensive than retaining existing ones.
How to Improve Customer Lifetime Value (CLTV)?
Practices that improve CLTV should focus on maintaining business relationships between companies and customers for longer. This process is also known as “customer retention.”
Learn 7 customer retention steps to create effective video campaigns actions below that will allow you to increase Customer Lifetime Value.
Great After-Sales Service
Customer service encompasses actions aimed at providing the highest quality customer experience possible. Therefore, it is focused on satisfying the problems and needs of consumers.
This is a key factor for people when choosing companies to How to Increase do business with. Excellent customer service will motivate users of burkina faso leads your brand to maintain the business relationship for longer.
To improve your customers’ lifetime value, there are many post-sale strategies and actions you can implement:
Know your target audience. It is essential that in all areas of your business you have full knowledge of customer profiles or buyer personas . This will allow you to generate personalized actions and more satisfactory experiences.