Customer centricity and customer lifetime value as drivers for sustainable growth

Find your future best customers

Do you understand your customers’ CLV?

Customer-centricity does not mean that every customer is important

It’s a marathon, not a sprint

Five things to know about customer lifetime value (CLV)

  1. All customers are not created equal. Businesses should be optimised based on customers with the highest customer lifetime value.
  2. Customer lifetime value is an estimate of the customer’s present value to the company, including the historic and future costs and profits attributed to that customer.
  3. There are relatively few future best customers, and many less profitable ones.
  4. Companies need broad customer acquisition efforts. The less profitable customers can fund the high costs of targeted acquisition efforts aimed at finding customers with high CLV.
  5. Customer centricity is a marathon. It may take a while for customer relationships to turn profitable, which makes optimising for CLV harder than optimising for shorter term metrics such as cost per acquisition (CPA).

Read key learnings by CLV professor Dr. Peter Fader

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Nordic digital sales consultancy. We help companies get more revenue and more customers in the digital era.

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Nordic digital sales consultancy. We help companies get more revenue and more customers in the digital era.

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