Imagine you had a crystal ball that told you exactly how much a potential new customer would spend on your products and how long they’d keep buying from you.
With that information, you could build the perfect customer acquisition strategy, spending just enough to get them onboard while ensuring they become profitable, fast.
And you’d know whether it makes sense to chuck a bunch of perks—free shipping, free gifts, big discounts—their way, or whether it’ll end up costing you more than you can recoup.
Turns out that crystal ball (kind of) exists: it’s called customer lifetime value (CLV).
In this article, I’m going to define customer lifetime value, explain why it’s so important (and how to calculate it), then provide some tried-and-trusted tactics for increasing your CLV—backed up with real-world examples.
Imagine you had a crystal ball that told you exactly how much a potential new customer would spend on your products and how long they’d keep buying from you.
With that information, you could build the perfect customer acquisition strategy, spending just enough to get them onboard while ensuring they become profitable, fast.
And you’d know whether it makes sense to chuck a bunch of perks—free shipping, free gifts, big discounts—their way, or whether it’ll end up costing you more than you can recoup.
Turns out that crystal ball (kind of) exists: it’s called customer lifetime value (CLV).
In this article, I’m going to define customer lifetime value, explain why it’s so important (and how to calculate it), then provide some tried-and-trusted tactics for increasing your CLV—backed up with real-world examples.
