๐ง๐ผ๐ผ ๐บ๐ฎ๐ป๐ ๐ป๐ฒ๐ ๐๐ฒ๐น๐น๐ฒ๐ฟ๐ ๐ถ๐ด๐ป๐ผ๐ฟ๐ฒ ๐ฐ๐๐๐๐ผ๐บ๐ฒ๐ฟ ๐น๐ถ๐ณ๐ฒ๐๐ถ๐บ๐ฒ ๐๐ฎ๐น๐๐ฒ, ๐บ๐ฎ๐ธ๐ถ๐ป๐ด ๐ฐ๐ฟ๐ถ๐๐ถ๐ฐ๐ฎ๐น ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฑ๐ฒ๐ฐ๐ถ๐๐ถ๐ผ๐ป๐ ๐ฏ๐น๐ถ๐ป๐ฑ๐น๐. Letโs break down what it is and why it matters ๐
#๐ญ: ๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐๐ง๐ฉ?
Customer lifetime value is the total earnings you can expect from one customer.
Itโs the cumulation of their history of purchasing from your brand.
Hence, lifetime value.
For example, you could say โMr X was our customer for 6 years and spent $15,000, thatโs his lifetime value.โ
But looking at the bigger picture and your overall customer base.
Youโre combining 3 key data points:
The average value of a purchase for your brand.
How often a customer makes a purchase from your brand.
And how long that customers stay with you.
The product of those 3 things will give you LTV.
And thatโs important to be aware of.
Businesses that increase customer retention by just 5% can see profits rise by 25% to 95%.
And LTV can be a lever to making that happen.
And with that in mind.
One of my favorite new roll outs is Amazonโs Customer Loyalty Dashboard in Seller Central.
Which can now help you track and leverage LTV for better decision-making.
This makes it easier than ever to better understand your program and leverage data.
#๐ฎ: ๐ก๐ผ๐ ๐ช๐ฒ ๐๐ฎ๐ป ๐ ๐ฎ๐ธ๐ฒ ๐๐ฒ๐ฐ๐ถ๐๐ถ๐ผ๐ป๐
It’s time to leverage those insights.
Some things to keep in mind are:
What products do your most valuable customers buy?
Potentially you can expand your offerings there.
How can we retain these customers?
We can use loyalty discounts and rewards tailored to this segment?
What feedback do they specifically provide?
To enhance offering to match what theyโre looking for.
And my favorite.
Can we actually spend more on marketing knowing that my long-term profit from a customer may exceed what I thought was the maximum I could spend to acquire a customer?
๐๐ฒ๐ ๐ง๐ฎ๐ธ๐ฒ๐ฎ๐๐ฎ๐
Identifying LTV unlocks another layer for your brand.
Do not sleep on Amazons Customer Loyalty Dashboard.
Its a quick way to take an L.