A Visual Introduction to Customer Lifetime Value [Infographic]

December 28, 2014

price_tags-1

This post originally appeared on the Sales section of Inbound Hub. To read more content like this, subscribe to Sales.

All customers are not created equal. Sure, you might like some more than others, but that doesn't mean they're your best clients. Sales comes down to revenue and ROI -- so how can sales leaders objectively determine which customers are most valuable?

Through a customer lifetime value (CLV) analysis. But calculating CLV isn't a cake walk -- inaccurate data, confusing metrics, and inadequate technology can all block the path. But the organizations that do figure out a customer's net costs and revenues over their engagement see the benefit: Three-quarters of senior executives in North America categorize CLV as a highly or extremely valuable indicator

This infographic from Aria provides a CLV primer, explaining the concept, covering how retention and satisfaction play into customer value, and suggesting ways to bump up your average client's CLV. You'll find that playing favorites based on net revenue versus rapport is a lot more profitable. 

CLV

Enjoy this post? To read more content like it, subscribe to Sales.

Read more...

Previous Article
How to Create a Successful Blog Strategy: A Step-by-Step Guide
How to Create a Successful Blog Strategy: A Step-by-Step Guide

Today, age and experience no longer necessarily determine...

Next Article
Want More Sales? Try Using These 13 Influential Words
Want More Sales? Try Using These 13 Influential Words

This post originally appeared on the Sales section of Inbound Hub....

×

Join the Phoenix HubSpot User Group

First Name
Company Name
Thank you!
Error - something went wrong!