What is Customer Lifetime Value and how to increase it?

Try LiveChat for free 👉 bit.ly/3Fr6lPH
📹 Subscribe ➡ bit.ly/LiveChat-Subscribe
Customer lifetime value, known as CLV is a measure of the total value that a typical customer will bring to your business for as long as that person or account remains a client. The value is determined by factors such as:
👉 the amount of money the customer is likely to spend,
👉 the length of their relationship,
👉 the profitability of their purchases.
Customer Lifetime Value is calculated by multiplying your customers' average purchase value, average purchase frequency, and average customer lifespan:
CLV = Average Transaction Size x Number of Transactions x Retention Period
Here are 3 ways you can improve your Customer Lifetime Value:
👉 By increasing a purchase
What I mean by increasing a purchase, isn't trying to sell as much as you can and push sales. I mean that you should upsell based on your knowledge of your customers. This may help retain your customers, meaning it will also improve your Customer Lifetime Value.
👉 By extending your customer lifespan
By improving your customer service, you can extend your customer lifespan, which leads to improving your CLV. Now, there are many things you can do to improve your customer service. However, before shifting anything around, you must have a customer service strategy. And before you even create a strategy, you need to know who your customers are. There's a lot that comes with improving your customer service, that's why we’ve got a video for you that will tell you all you need to know on how to do it - • 9 Tips To Improve Your...
👉 Increasing the frequency of contact with the client
By increasing the frequency of contact with the client through reminders and customer engagement, you can improve your Customer Lifetime Value by a lot. You can engage with your customers through video, social media, email, and many other channels. You want them to want to be your customers.
Your Customer Lifetime Value depends on if you know your customers well, the customer service you provide, if you engage with them after they purchase or not, and much more.
We've had a mathematics lesson, a few examples, and tips, and you now know what Customer Lifetime Value is, why it's important, how to calculate it, and how to improve it.
See you soon!
#CustomerLifetimeValue #CLV #customerservice
00:00 Introduction
00:11 What is Customer Lifetime Value?
02:20 Customer Lifetime Value Formula
03:34 What Variables You Need to Calculate your Customer Lifetime Value?
07:13 Average Customer Lifespan
10:37 3 ways you can improve your Customer Lifetime Value
12:38 Outro
-
📹 Subscribe ➡️ bit.ly/LiveChat-Subscribe
---
Join us!
👍 Facebook ➡️ / livechat
📸 Instagram ➡️ / livechat
🐦 Twitter ➡️ / livechat
👔 Linkedin ➡️ / livechat
📹 UA-cam ➡️ / livechat
🤖 GitHub ➡️ github.com/livechat
-
Hi, great to see you here! :)
We are LiveChat, and our mission is to help people and businesses communicate better and fully express themselves. You may be familiar with our most popular product: LiveChat, which allows you to communicate with your customers directly through chatting (yes, it's that little icon in the bottom right corner of almost every page), but that’s not the only thing that we do. Let us introduce you to the rest of the LiveChat family:
ChatBot allows you to automate communication with your customers. HelpDesk is a powerful online ticketing software. And KnowledgeBase... you'll never guess: it enables you to share knowledge with others easily and quickly.
However, it doesn't stop there! You can expand our software functionality with additional integrations: Google Analytics, Facebook Messenger, Mailchimp, HubSpot, Salesforce, and many more. All this to give you the perfect tool to communicate with your customers.
Want to learn more? Go to www.livechat.com and join more than 36,000 companies that use LiveChat.
PS. We know that’s a lot. We’re pretty proud of that.

[@LiveChat]

Try LiveChat for free 👉 bit.ly/3Fr6lPH
📹 Subscribe ➡ bit.ly/LiveChat-Subscribe

[@HouseOfMoy]

Great video!! But what does "a" refer to again for simple LTV equation? Thank you

[@evangelinagabertan3215]

hi

[@LiveChat]

hello 👋