Customer Lifetime Value
CLTV is the total value created by any given customer to the company. This helps Businesses to determine the acquisition cost for the new customers.
Stages of Customer Lifecycle
Reach:
Reach creates awareness of the product. This invites the customer or the target audience to know and learn more about the product.
Acquire:
Reaching the potential customer won't help if you cant deliver the relevant product. contacting them directly with personalized communication will help in acquiring them.
Convert/Develop
Once the customer made his first purchase, the business starts to upsell or cross-sell its product to the customer. Asking for feedback helps in developing the customer relationship.
Retention:
Retention begins with satisfying a consumer’s needs, caring for them and cultivating the relationship.
Advocacy:
Once the retention stage of the lifecycle is reached, you want these customers to become brand advocates for your business.
If they are truly satisfied, they will suggest the brand to their friends and family.
