February 18, 2020, 0 Comments
Customer Lifetime Value
Do you know your actual customer lifetime value?
Often, companies establish a marketing budget based on the cost of a lead or new acquisition. What some companies fail to realize is the hidden value of a new customer, namely: how much they will spend over their lifetime, will they leave a positive review, or will they refer more business?
“ Every business shares the goal of increasing the overall lifetime value of their customers. A Simple formula to see this is to take the gross of every sale a company has ever made divided by the number of customers they have obtained is the lifetime value of their customers. ”
Once you have established a clear understanding of how much you stand to gain per new customer/buyer, you’ll be able to budget more accurately. Often, companies increase their marketing budget after they realize how much they make with each new customer.
One of the main benefits an outbound sales team adds to businesses is a direct impact on the lifetime customer value. Marketing efforts can fall short of selling a customer on everything you have to offer and having a dedicated rep to call each new customer, maximizes the opportunity to make sure the customers knows all of the extra value they can get.
Be certain that your customers are given the best chance of happiness. Most of the time, that includes an immersive experience and all of the products that work together to increase satisfaction. The more you know about the lifetime value, the more you know what you’re willing to spend to gain new customers.