Business owners nee to track and most importantly understand dozens of important metrics – from online store conversion rate to company EBITDA. Monitoring important KPIs helps the company stay in the right direction as it grows and scales the business and makes the right, data-driven decisions. One of the indicators that help to understand how effective the company’s marketing activities and other activities aime at acquiring and retaining customers are is CLV – Customer Lifetime Value. CLV indicates what can be expecte from the average customer during the relationship between him and the brand. We talk about what Customer Lifetime Value is, and how and why it is worth measuring in this article. What is Customer Lifetime Value Customer Lifetime.
His experience and has bought several
Value indicates the total amount of money that a customer spends on your brand or in your store over the course of the business relationship – that is, how much one customer is worth to the business on average. This indicator helps you decide new Industry Email List customers and retaining existing ones. CLV is also a good way to understand how customer loyalty is currently shape – if customers come back and shop again, that’s a good sign. However, the specificity of understanding customer lifetime value depends on.
Their lifetime may be worth
The business model and market environment. The car owner’s CLV can be as much as PLN 500,000 if he is satisfie with cars from the brand over the years. In turn, the CLV of a coffee drinker can be even higher – depending on how many coffees KHB Directory he drinks a day and where he buys them. Conversely, someone who buys a home twice in, say, $45,000 to an estate agent, because while the purchase value is large, the percentage paid to the agent is only a fraction of the total.
