Customer Lifetime Value (CLV) measures the profit from a customer across the lifetime of the relationship.
Customer Lifetime Value is a metric for assessing the long-term health of a SAAS and subscription businesses.
You can use this metric to encourage your staff to play “the long game” in business.
It was March and I was presenting at our Company’s User Group Conference.
Should I have spoken about a general topic that interested all attendees?
Absolutely not!
Because then NOBODY in the audience would have been engaged.
I’ll show you the 6-Step “NICHE DOWN” plan that I used to grow an 8-Figure business that competed with “FREE” products …
WHAT HAPPENS WHEN YOU NICHE DOWN?
You become highly differentiated in your niche.
You attract qualified people in your niche.
You don’t have to worry about price pressure.
You use your niche as a springboard to scale into an adjacent niche, a great strategy for a startup company.
The reality was staring me right in the face, as I peered at our Year on Year sales numbers.
I was seeing more GROWTH from EXISTING customers … than I was from closing NEW customers.
Not surprising for a mature product line
But hold your horses !
What about that brand spanking new product line that you just launched?
What about Start-up businesses getting off the ground?
Should they first focus on retention or upon closing new customers?
You see, there’s a shift in your sales and marketing approach that you need to make.
Indeed, a Bain & Co. and Harvard Business Review study estimates a 5% increase in retention results in 25% – 100% increase in profits
The answer is that you need to ingrain a customer retention program in your day to day operations and do it as quickly as possible, at the SAME time that you are growing your new customer base.