Information about the lifetime value of customers should become the basis for managing the company’s marketing. The indicator will help to understand the effectiveness of the chosen strategy, adjust it, and determine ways to increase the company’s profit.
Remember that there are no exact values for the average LTV: this figure will be different for each business. Therefore, comparing the indicators iran phone number list with competitors does not make sense – it is better to look at your own achievements. For example, compare it with the costs of attracting customers. The latter should not be higher than the lifetime value of the buyer.
To fully use the metric in managing the company’s marketing strategies, consider simple recommendations:
- Find your most profitable clients and focus your efforts on retaining them;
- segment the data – the indicator is calculated for each customer group separately;
- Increase your LTV value – implement loyalty systems, email and messenger newsletters, cross-selling, website widgets .
Are you counting on long-term work in the chosen niche? Then start planning your advertising budget for the entire period of interaction with clients, increase loyalty and take into account their lifetime value. The service for increasing sales on the website
will help you supplement your company’s website with application forms, pop-up windows and recommendation feeds .
1. LTV = Revenue / Number of buyers .
All data is taken for a certain period, for example, for a month. Such calculations are the simplest, but approximate. Remember that you do not take into account new users at the initial stages of the sales funnel. Perhaps a person is subscribed to news, actively participates in activities, but is only planning to purchase your product.
Disadvantages: inaccuracy, difficulties in determining the calculation period.
LTV = Average revenue from a client for a selected period of time x Lifetime
This method requires a preliminary calculation of the average profit from a specific buyer. To do this, divide the regular income of the brand by the number of customers for a specified period – day, month, year.
Disadvantages : the conventionality of the jan sizer gerente de relaciones con empleados customer lifetime indicator.
LTV = Average check x Customer “lifetime” x Average business margin x number of purchases by an individual consumer
The method allows you to forecast customer behavior. For example, the number and frequency of purchases, taking into account the chosen marketing strategy of the company.
Important! The more clients a brand has, rich data the more accurate the calculation results will be.
Calculating the lifetime value of customers is not enough. The obtained values must be analyzed and used in the company’s marketing management. We will tell you how to do this below.