Customer LifeTime Value (CLTV)
What is CLTV?
One of the most important ways to analyze your business is to calculate the lifetime value (CLTV) of your customers. You can’t predict the future, so it’s what I like to refer to as a “realistic customer value projection”.
The importance of calculating your CLTV is of much significance because it will provide valuable customer insights, save marketing costs and the result will prove you can make more money by doing less work.
The core goal is to improve the lifetime value of every customer walking into your store.
So, let’s say your average customer spends $20 a month and statistics show the average customer stays a customer for at least 3 years. The CLTV is $20 x 12 months x 3 years = $720.
Improving the lifetime customer value will become your main priority. Because if you and I manage to raise that $720 by $200 a year, you’ll be in heaven.
So let’s talk about how I can help you.