Lifetime Customer Value - How to Calculate it - Strategy Simple скачать в хорошем качестве

Lifetime Customer Value - How to Calculate it - Strategy Simple

https://strategysimple.com Hey, It’s Rob Trube with Strategy Simple with another drill for your Organic Growth Acceleration Playbook. Today we are going to calculate one of the most important metrics you can track – Customer Lifetime Value or LTV. This quote from Bain & Company captures it pretty well:. By knowing the total amount of revenue a person will generate, companies can make better decisions on how to acquire and retain the customer. – Bain & Co. So, how do you calculate it? It’s actually pretty simple. Average Customer Value x Average Customer Lifespan (with your company) = LTV So, If you have an average customer value of $1200 per year and your Clients are typically with you for 4 years, then the LTV of a client is $4800.00 You can us this number in a variety of ways: Segment existing customers and then implement strategies to improve retention or increase their average revenue with your company. Make data-based decisions on what types of customers to pursue and which to avoid. Inform the critical decisions of customer prioritization, acquisition, onboarding and retention. So that’s it – LTV is a number you can easily calculate and use throughout the decision-making process in your business. Again, I’m Rob Trube with Strategy Simple. See you next time!