Why Customer Lifetime Value Matters in Business Growth? How To Calculate CLTV? TechGrowth Insights

Customer Lifetime Value (CLV) is crucial for business growth. Learn what CLV is and how to calculate it in this informative video. Understanding CLV can help you make better decisions and improve customer retention for long-term success.

Why Customer Lifetime Value Matters in Business Growth? How To Calculate CLTV? TechGrowth Insights

See if you quality for a free Growth Opportunity Assessment:

https://www.techgrowthinsights.com/gr...

In this video, Michael Williamson from Tech Growth Insights discusses a vital metric for technology and telecoms companies: Customer Lifetime Value (CLTV). Understanding and optimizing CLTV is essential for making informed decisions about customer acquisition, retention, and growth strategies.

Key Topics Covered:

Definition of Customer Lifetime Value (CLTV):

CLTV represents the total amount of money a customer is expected to spend on your products or services throughout their relationship with your company.
It helps understand the long-term value of your customers and informs strategic decisions.
How to Calculate CLTV:

The basic formula: CLTV = Average Purchase Value x Average Number of Purchases x Average Customer Lifespan.
Example calculation demonstrating the potential revenue from a single customer over their lifetime.
Strategies to Increase CLTV:

Importance of understanding your customers and delivering exceptional customer experiences.
Conducting primary qualitative research, including in-depth interviews, focus groups, and surveys with your Ideal Customer Profiles (ICPs).
Using insights from customer research to inform product development, marketing, sales, and customer support.
Creating a continuous improvement cycle based on customer feedback to enhance satisfaction and increase CLTV.
Real-World Example:

A leading enterprise software company struggling with high churn rates and low CLTV.
Comprehensive customer experience audit revealing issues with the onboarding process.
Overhaul of the onboarding process leading to a 30% drop in churn rates and a 20-25% increase in CLTV within the first year.
Steps to Get Started with CLTV Optimization:

Calculating your current CLTV and setting improvement goals.
Investing in primary qualitative research to gain deep customer insights.
Identifying and implementing opportunities for enhancing customer experience.
By focusing on CLTV and prioritizing customer experience, technology and telecoms companies can create lasting, profitable relationships with their customers. Every interaction is an opportunity to add value and build loyalty.

If you found this video helpful, please like and subscribe to the channel for more insights on customer experience and growth strategies in the technology and telecoms sectors.

#customerlifetimevalue #growthmarketing #techgrowthinsights
TechGrowth Insights, Why Customer Lifetime Value Matters in Business Growth, How To Calculate CLTV, how to calculate customer lifetime value, lifetime value, customer lifetime value explained, lifetime value of a customer, customer lifetime value analysis, how to calculate your cltv, advantages of customer life time value, calculating clv, lifetime value calculation, lifetime value of customer, b2b marketing tips, growth marketing