Most businesses try hard to attract new customers, but fail to grow the lifetime value of existing customers (CLTV).
3 steps to improving lifetime value
1. Identify your valuable customers
Not all customers are valuable. Put simply, CLTV is the sum of your customers’ past value to your business, plus their future value.
Suppose it costs £10 to attract a new customer, but one type of customer creates £5 of value while another type creates £500 of value. Which type would you choose to attract more of?
2. Develop strategies to increase CLTV
The objective is to get more customers to spend more per transaction… then do so more frequently… and continue doing so for longer.
Many of Britain’s best brands have developed great strategies to grow CLTV, but now it’s possible for smaller companies to also benefit from these marketing secrets.
3. Implement, measure and refine
Sustainable business success depends on effectively implementing the right CLTV strategies, and regularly measuring performance to identify what’s working and what isn’t.
This performance analysis can then be used to drive continual improvements to all aspects of your marketing.
Peter Hawtin has worked closely with us in the development of our website offering over the last five years. This has all been supported by high quality appraisals of the campaigns we have undertaken to maximise the effectiveness of our budgets.
Peter Hawtin’s contribution to our business has been substantial. Perhaps most notably however, his passion and drive for results have made the consultant label irrelevant almost from day one.