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Business 101 says you need to attract new customers and keep your old ones to be successful. But it's the remaining customers who are most valuable to employee contact list brands. By keeping buyers and customers coming back for more, you increase your customer lifetime value (CLV). This customer retention helps your brand earn more money while spending less on marketing resources because loyal customers spend more and are more likely to buy. The rest of this article will allow you to employee contact list focus on customer lifetime value and create in-store marketing strategies that will help you retain shoppers. What is the customer lifetime value?
It's not uncommon for marketers to think short term when selling to customers. They're so focused on implementing a certain promotional strategy to employee contact list hit their sales targets for the month that it's hard to think about the long-term trajectory of customers. But customer retention should always be a priority. Customer Lifetime Value offers insight into the true value of customers and their importance to your business. Brands often use CLV to determine the health of their operations. To employee contact list calculate customer lifetime value, multiply the average ticket per purchase by the number of times the customer buys with your brand per year.
Then multiply that number by the average number of years a customer has been with your business. For example, if a barber charges $50 for a cut and customers visit him monthly, their annual value is $600. If the employee contact list average client stays with the stylist for five years until they move or change services, then the CLV is $3,000. When this company loses a customer, it loses over $50 off a haircut. They lose $600 a year in revenue. Thinking about customer lifetime value helps managers understand the real loss to employee contact list the business and the long-term risks of not retaining customers and attracting new ones.