Not all customers are valuable. Simply, CLTV is the sum of customers' past value to your business plus their future value. Suppose it costs £10 to attract a new customer and customer type 'A' creates £5 value and customer type 'B' creates £500 value. Which one would you choose to attract?
Your first sale to a customer should be the start of a long relationship. Your objective should be to get more customers to: spend more per transaction; more frequently; for longer. A few of Britain's best brands have developed great strategies to grow CLTV. The good news is that it is now possible for smaller companies to also benefit from these insider marketing secrets.
Business success depends on effectively implementing the right CLTV strategies and regular measurement of performance to identify what's working and what isn't. This performance analysis should drive continual improvements.