How Buyer Lifetime Worth Impacts Your Enterprise
Some customers are more valuable than others. But how more valuable? The longer a customer remains a customer, the greater its value to you as a company over time. For example, as a loyal customer of Pinkie’s Bakery, I’ll be contributing over $ 624 to their sales twice a week for over a year. If I’ve been a loyal customer for years it can easily be thousands of dollars. Wouldn’t it be nice to have hundreds or thousands of customers adding that type of revenue to your business?
This is known as Customer Lifetime Value: The projected revenue that a customer will generate in your company over the course of their life. You want the value of your customer lifetime to be as high as possible. You don’t want a lot of new customers to come one time and never come back. Repeating loyal customers makes up the bulk of your sales. loyal customers achieve over 10 times their turnover in their lives!
Here’s an infographic that describes what the customer lifetime value is, how it is calculated, and how it will grow across your small business across the board. We have five ways to not only increase customer spend over time, but also to use a loyalty or rewards program to help you achieve your goals.
