But it's not just about saving time and money :
Posted: Mon Jan 06, 2025 9:50 am
Customer lifetime value (CLV) is the metric that measures how much a company can likely earn from its relationship with a customer for the time that this relationship continues. CLV is one of the main marketing KPIs , particularly important because it is able to return the overall value produced by a customer (average) for a company over the entire duration of their relationship . It is a parameter that absolutely cannot be missing from those habitually used by marketers. To confirm its strategic importance, just stop for a moment and compare the acquisition costs incurred to obtain new customers and the expense to continue selling to customers already acquired .
The CAC (the cost sustained by a company to acquire a customer) can vietnam whatsapp resource amount up to 7 times more than the loyalty cost . Furthermore, the probability of being able to acquire a new customer varies between 5 and 20% while that of making a sale to an existing customer is between 60 and 70% . The advantage of investing in actions that increase the customer life value and more generally in loyalty programs appears evident.
including CLV among the metrics used regularly is always a winning idea. Thanks to the customer lifetime value, it is possible to evaluate business results and performance with a certain degree of accuracy and consequently make more informed marketing and sales decisions. The analysis of CLV by customer segment can offer insights into what works and what needs to be corrected promptly or even eliminated. In a more proactive sense: increasing the CLV of customers already acquired contributes concretely to increasing turnover and revenue .
Companies have many tools at their disposal to improve CLV over time. In this article, we will provide a definition of the customer lifetime value as complete as possible, using a simple example, give some advice on how to calculate it, and suggest some tactics to increase it.
The CAC (the cost sustained by a company to acquire a customer) can vietnam whatsapp resource amount up to 7 times more than the loyalty cost . Furthermore, the probability of being able to acquire a new customer varies between 5 and 20% while that of making a sale to an existing customer is between 60 and 70% . The advantage of investing in actions that increase the customer life value and more generally in loyalty programs appears evident.
including CLV among the metrics used regularly is always a winning idea. Thanks to the customer lifetime value, it is possible to evaluate business results and performance with a certain degree of accuracy and consequently make more informed marketing and sales decisions. The analysis of CLV by customer segment can offer insights into what works and what needs to be corrected promptly or even eliminated. In a more proactive sense: increasing the CLV of customers already acquired contributes concretely to increasing turnover and revenue .
Companies have many tools at their disposal to improve CLV over time. In this article, we will provide a definition of the customer lifetime value as complete as possible, using a simple example, give some advice on how to calculate it, and suggest some tactics to increase it.