How do you decide which customer is more important or who give you better value? Is someone spending RM1,000 a year better value than someone spending RM200 monthly? Or is someone make 3 purchase a year better value than 1 purchase a year?
There are many metrics in marketing but there is one you must know and use, Customer Lifetime Value (CLV), the stat that can tell you what value a customer brings to your company over the span of their relationship with you.
To be more specific, Customer Lifetime Value is the projected revenue a company expect to generate over the entire of their business relationship with the average customer. Knowing the CLV allows you to know
Customer Lifetime Value = Value of average sale X Average number of transactions X Customer retention time period
Customer lifetime value can be interpreted in many ways. Understanding CLV over time helps business to plan and implement better campaign to build customer loyalty, increase sales and improve business margin.
Need help on determining your Customer Lifetime Value and segment your database for targeted marketing? Talk to us and we can work it out for you.
Customer Lifetime Value matters more than you think. It impacts customer retention rates, reveals the level of brand loyalty and helps your business stay in black.
Customer loyalty program is an incentive process for business to keep their customer back. Whether it's a hotel, airline, restaurant or even a pet shop, some form of reward not only make customers feel appreciated, but it will help maintain customer retention.
Today brands are quick to strategise on how to make new customers and retain them through quality products and customer service. But how do you build and compete for your customer trust?
If you have any enquiries, or simply wish to get in touch with us, here is where you can find us.
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