Customer Lifetime Value:
A Must-Know for Marketers
Professional marketers know the rule: You don’t make your money from the first sale. You make your money from the repeat business.
The vast majority of profit derived from acquiring a new customer comes in the months and years AFTER their initial purchase. But how much can (or should) you be spending to get new customers? How much is too much and how much is too little?
Customer Lifetime Value is THE way a business measures the value and opportunity related to their repeat business.
Calculate your customer lifetime value now
What is Customer Lifetime Value?
According to the Harvard School of Business, customer lifetime value “helps a marketing manager arrive at the dollar value associated with the long-term relationship with any given customer, revealing just how much a customer relationship is worth over a period of time.”
In short, it helps business owners and marketers decide how much money they’re willing to spend in order to acquire a new customer. So while many first time sales won’t result in a profit, they will ultimately yield a greater profit to your business in the long term.
Need help calculating your customer lifetime value or want to discuss your results?
Calculating Your CLV
1. Site Visits & Conversion Rate:
2. Enter Your Renewal Percentages:
3. Average Revenue & Fulfillment Costs:
4. Review Customer Lifetime Value & Target Spending:
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