Goodbay Blog 5 Steps to Increase Customer Lifetime Value

Did you know that customers making a subsequent purchase spend 67% more on average than first-time buyers? Even if you this is news to you, you undoubtedly understand the value of retaining customers for as long as possible.Not only is it cheaper to retain existing customers than to attract new ones, keeping customers coming back for additional purchases drives up their "lifetime value" (LTV) as well.What Is Lifetime Value?Typically expressed as "CLTV" or simply "LTV," a customer lifetime value score is a critical performance metric that virtually every business should track and work to improve. LTV indicates the total amount of revenue that a single account will generate for your business over the entirety of the relationship.For instance, if a customer makes a single purchase valued at $100 and never does business with your company again, their lifetime value is $100. However, if the same customer makes a $100 purchase every three months for three years, their customer lifetime value would be $1,200.So how do you maximize LTV to generate more revenue and fuel rapid growth? While there are multiple potential pathways you could follow, let's focus on one proven formula: Five easy steps that include the following: