Might cost you in sales and marketing
Posted: Sun Dec 22, 2024 10:46 am
Calculating Customer Lifetime Value gives you a better idea of how much a new customer . This prevents you from spending too much (or too little).
It also justifies your spending within your budget. In fact, it’s important thailand telegram not to focus too much on it, but to make sure you have a general idea.
What insights does calculating Customer Lifetime Value provide?
Calculating customer lifetime value can provide additional insights into your business operations:
Your customer value helps you understand your marketing and sales efforts. For example, you can understand whether your online marketing campaigns are profitable or if they need to be fine-tuned.
Based on your customer value, you can determine your marketing budget. You know what a campaign will ultimately bring you, and therefore how much you can invest.
Customer lifetime value also gives you insights into the health of your business: you know what existing customers bring you on average, and what kind of results you can expect over the next period of time.
Customer Types
Another insight provided by CLV is that you can develop different strategies for your customers based on the value they provide to the company and the value the company provides to the customers. Gupta and Lehmann (2005) identified four types of customers and discussed how to best handle each type of customer:
It also justifies your spending within your budget. In fact, it’s important thailand telegram not to focus too much on it, but to make sure you have a general idea.
What insights does calculating Customer Lifetime Value provide?
Calculating customer lifetime value can provide additional insights into your business operations:
Your customer value helps you understand your marketing and sales efforts. For example, you can understand whether your online marketing campaigns are profitable or if they need to be fine-tuned.
Based on your customer value, you can determine your marketing budget. You know what a campaign will ultimately bring you, and therefore how much you can invest.
Customer lifetime value also gives you insights into the health of your business: you know what existing customers bring you on average, and what kind of results you can expect over the next period of time.
Customer Types
Another insight provided by CLV is that you can develop different strategies for your customers based on the value they provide to the company and the value the company provides to the customers. Gupta and Lehmann (2005) identified four types of customers and discussed how to best handle each type of customer: