Do you know how much money
each customer makes on average
for your company?
Calculating customer lifetime value is significant,
especially in SaaS startups.
Understanding this metric and
working to improve it directly influences
the health of your business.
Along with reducing CAC and
more excellent customer retention,
it is possible to gain revenue.
But what exactly is lifetime value,
and how can you increase it?
Let’s learn together. Here we go!
Hello everyone.
I’m Sara from Dopinger.
Today, I’m gonna explain
what lifetime value is and
give some tips about how to increase it.
The lifetime value determines
the value of a customer to the company
or how much they spend, on average,
on your product or service
while doing business with you.
We measure lifetime value through other metrics
such as average ticket and customer lifetime.
To calculate,
it is necessary to monitor the customer’s behavior
while doing business for a while.
Therefore, we always start counting LTV
from the first purchase
to the end of the contract.
It would be best
if you did this from time to time,
as LTV changes as new plans are released
or changed or when any new strategy
is implemented.
Now that you have the tools
you need to understand your LTV,
here are some ideas that can help you
improve this metric within your company.
One, Create A Loyalty Program
Investing in this type of program
guarantees more repeat purchases,
increasing the lifetime value.
Invitation programs are also valid
like getting a discount
when a friend makes a purchase,
for example.
Two, Improve Customer Service
The more you invest in well-trained
and skilled employees,
product development,
and other attributes,
the greater your lifetime value.
Be sure to use this indicator.
Three, Deliver Something Extra
Enchanted customers are
customers you don’t lose.
Whenever you deliver something extra
along with a consumer purchase,
they will feel special and buy more from you.
Four, Keep Your Business Healthy Lifetime Value
It is usually one of the most significant indicators,
but it is not the only one.
As you know
it is essential to know other factors
that influence it before trying to calculate it.
So, especially if your business is still new,
don’t be in such a hurry.
Instead, seek to build a credible customer base
with your purpose in mind
and what you can offer and improve over time.
And Five
Relevance to Online Marketing
and Relationship Marketing
In e-commerce,
customer relationship management costs
can be kept relatively small compared
to over-the-counter retail.
Especially email, social media,
and Organic Search and related actions
can map the cost structures
that generate high CLV.
As stated by research from 2013,
search engines appear to have a high CLV
because users frequently use search engines
to search for products,
services, and brands.
Thus, the average CLV value is about
50% higher than in paid search.
Email marketing is useful for
young companies and startups,
as high CLV values are expected in this area
due to low shipping costs.
In general,
startups that use CLV
should track performance
at the company’s start
to maximize monetization.
There are various ways and means
to achieve high CLV scores,
from personalized offers,
improved customer service
through sponsorship and loyalty programs
to decreased acquisitions,
logistics, or other internal processes.
Alright, that’s is for Lifetime Value today.
If you liked this video or learned anything,
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If you need more information
about this content,
you can check out the description box
and go to dopinger.com.
Thanks for watching,
and have a wonderful day.