Even if you have the best products and the greatest team, it doesn’t mean anything if you don’t have people purchasing from your brand.
Therefore, understanding your customers and what they are looking for at every step of the buyer’s journey is crucial to the long-term success of your brand.
In order to learn more about your customers and the value they provide for your brand, it’s helpful to know how much value they will bring to your organization over the entirety of their relationship with your business.
After all, it’s more important to nurture your current loyal customers than spend time and money finding new ones.
What is Customer Lifetime Value
Put simply, it’s a calculation of how much money a customer will spend on your brand for the entire time they are a customer.
The longer customers stay with business phone list your brand, the more opportunity they have to purchase and the greater their value becomes.
That means that customer retention is an important part of your CLV as it can increase the overall value your customers have.
The customer lifetime value helps you learn more about your customer journey and the amount of customer loyalty your audiences have.
What is the Difference Between CLV and LTV
Customer lifetime value is often with another customer metric, the lifetime value.
Lifetime value, or LTV, is a metric BX Leads that tracks the lifetime spend of customers, but rather than taking it down to the customer value, it is an aggregate metric.
Overall, it’s better to use CLV as your customer value metric because each customer is an individual, and should be considered as such.
CLV gives you a better understanding of what each customer brings to your brand by diving into deeper metrics.