If you think the primary performance driver of your business is ROI, then what about the returns you get from customers not only today, but throughout your customer’s lifetime?
Identifying high value customers plays a big hand in retaining customers that count and maintaining customer relationship.
By calculating customer value, you will be able to analyze previous investments and gain a better understanding on future marketing investments.
As customer retention is far better and cost effective than acquisition, customer value should precede customer acquisition. To create customer value, you need to constantly reinvent, refine and evolve customer experience and service.
- By understanding your customers’ lifetime value:
- You can get to know what customers want,
- You can get better at giving customers what they want,
- Customers will get better at staying with you.
It is possible to create your own generation of high value customers by constantly surpassing your customers’ expectations through value. As visionary Steve Jobs beautifully stated, “If I’d asked customers what they wanted, they would have told me, ‘A faster horse!’” People don’t know what they want until you show it to them. That’s why I never rely on market research. Our task is to read things that are not yet on the page.”