Jan 23, 2019
Do You Understand and Know How to Measure Your Customer Lifetime Value?
Many businesses simply look at the cost of customer acquisition and try to get a lot more customers for as little cost as possible. Many businesses simply don’t know or understand the important metric of Customer Lifetime Value or CLV. This metric is important because it can tell you who your best customers are and why.
Customer Lifetime Value is the amount of money that a customer spends in your business and can be measured over a period. What it does is shows you what customers make multiple purchases over a period of time, and which ones don’t. These calculations can give you some interesting data and the opportunity to take action concerning why one group of customers spent more money, while others didn’t.
Not only does this help you go back and look at your marketing campaigns to see how they can be improved to get more conversions, but it also helps you in your customer acquisition strategy, and how to maximize your spending for maximum value instead of minimum cost. A customer who spends more money over a period is worth more than 1 or 2 customers that spent money only once.
Here at WEBX.DIGITAL, we can show you how to effectively measure your Customer Lifetime Value and maximize your marketing and customer acquisition strategy.