EP 263: What Is Customer Lifetime Value?
In today’s marketing fundamentals episode, we’re talking about a very important business concept: customer lifetime value and why it matters in your online business.
This is one of two universal business metrics. The other is customer acquisition cost.
Customer lifetime value tells you how much a customer is worth to you so you can figure out how much you’re willing to pay to acquire a customer.
This is especially relevant in the online marketing space where the cost to acquire a customer is generally higher than traditional product businesses.
What You'll Learn in Today's Episode
- The two metrics every business needs to know
- What customer lifetime value is
- What customer acquisition cost is
- What the biggest cost is in the online marketing space
- Why you want to find ways to increase customer lifetime value
- Why it can be difficult to determine customer lifetime value and one tool that can help you figure this out
- Where I started out with customer lifetime value and where I am now
- Key questions you need to ask: how do I increase customer lifetime value and decrease customer acquisition cost
- How this data can help you refine your business