That’s way too much on an average order value of €30, that’s impossible!’ A comment I regularly hear in my position as a Digital Marketing Consultant. For me this is a signal that I must include Azerbaijan B2B List the client in question in the concept of ‘Customer Lifetime Value’. What is it exactly? And how do you calculate it? I’ll tell you in this article. What is the Customer Lifetime Value? Loosely translated, the Customer Lifetime Value (CLV) means: the value of a customer over Azerbaijan B2B List the entire period that a customer is a customer of a particular organization. In short, you look beyond just the revenue from the first purchase that a customer brings in after he or she comes in with the help of (paid) Azerbaijan B2B List marketing efforts.

When is this value important Azerbaijan B2B List

The relationship between the CLV and ‘Cost per Azerbaijan B2B List acquisition’ As mentioned briefly in the introduction, in my opinion there is too much focus among organizations (and regularly also among marketers) on the lowest possible costs per acquisition.  As a result, an organization does not grow or Azerbaijan B2B List hardly grows. The problem : Repeat purchases (retention) are not taken into account in this case. When is this value less important? Sometimes Azerbaijan B2B List the focus on cost per acquisition instead of Customer Lifetime Value is completely justified.

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The relationship between Azerbaijan B2B List

Take a supplier of solar panels as an example. A significant investment Azerbaijan B2B List that will make people think twice. If someone subsequently purchased solar panels from the relevant supplier after clicking on an ad within Google, what is the chance that they will come back again in the future? Exactly: with this Azerbaijan B2B List product the chance is quite small. Therefore, in this case it makes sense that the cost per acquisition is important.  Such a supplier cannot afford Azerbaijan B2B List too high acquisition costs.

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