How to Use Customer Lifetime
Posted: Thu Jan 02, 2025 10:30 am
On average, the subscription is interrupted after 3.5 years, thanks to the convenience of automatic monthly renewal.
CLV = €17 (average sale per customer) x 12 (annual purchases) x 3.5 (years) = €714.
How to Use Customer Lifetime Value for Your Business Success
And once you've calculated it, what happens? You're halfway there!
You can use this information for a variety of purposes, all related to the success of your business.
Customer loyalty: knowing your customers' CLV will help indonesia phone number list you identify your most valuable customers and direct your attention to them to strengthen their loyalty (nurturing). For example, you could send them exclusive discounts with newsletters, or set up loyalty programs aimed at customers with a high CLV. Another example is the point collections and cards that supermarkets - and retailers - in general use to collect information and then profile consumers with the aim of offering them personalized promotions, either individually or by cluster.
Resource Allocation : Knowing the Customer Lifetime Value of your customers, you can decide how to allocate resources to get the maximum return on investment (ROI) . How much of your marketing budget will you allocate to acquiring new customers? How much to nurturing existing ones? As you know, retaining an existing customer costs less and increases the company's profitability more than proportionally, however, it is unthinkable to give up acquiring new customers if you want your company to grow in the long term.
CLV = €17 (average sale per customer) x 12 (annual purchases) x 3.5 (years) = €714.
How to Use Customer Lifetime Value for Your Business Success
And once you've calculated it, what happens? You're halfway there!
You can use this information for a variety of purposes, all related to the success of your business.
Customer loyalty: knowing your customers' CLV will help indonesia phone number list you identify your most valuable customers and direct your attention to them to strengthen their loyalty (nurturing). For example, you could send them exclusive discounts with newsletters, or set up loyalty programs aimed at customers with a high CLV. Another example is the point collections and cards that supermarkets - and retailers - in general use to collect information and then profile consumers with the aim of offering them personalized promotions, either individually or by cluster.
Resource Allocation : Knowing the Customer Lifetime Value of your customers, you can decide how to allocate resources to get the maximum return on investment (ROI) . How much of your marketing budget will you allocate to acquiring new customers? How much to nurturing existing ones? As you know, retaining an existing customer costs less and increases the company's profitability more than proportionally, however, it is unthinkable to give up acquiring new customers if you want your company to grow in the long term.