What is a customer worth to a business? You can find out through a measure called customer lifetime value: The amount of profit a customer is likely to generate for the company over the duration of the customer-company relationship. According to a post on Harvard Business Review's blog, knowing CLV allows business managers to more effectively focus market strategies and customer retention efforts.
HBR's website offers an interactive display for calculating CLV, using average number of annual purchases, average gross margin, direct marketing costs, discount rate, average spend per purchase, acquisition response rate and customer retention rate. Access the tool here.
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HBR's website offers an interactive display for calculating CLV, using average number of annual purchases, average gross margin, direct marketing costs, discount rate, average spend per purchase, acquisition response rate and customer retention rate. Access the tool here.
More Articles on Turnarounds:
Covenant Surgical Partners Signs Agreement With ASCpro
Big Business Visibility for the Little ASC
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