Fast Company: Embracing the customer lifetime value model
This article was written by Greg Kihlström and originally published on Fast Company. Read the full article here.
CLV is extremely important for those organizations that are embracing the modern view of a service-based model and the future of customer experience.
As long as there are shareholders and other stakeholders that define a company’s success in terms of profitability, there will always be pressure to deliver on short-term goals and quotas. I’ve found the brands that stand the test of time, however, are able to balance this need for short-term success with a longer-term view of growth and the value that a loyal customer provides.
This is often referred to as a customer lifetime value model, where the total benefit that a customer’s interactions, purchases, recommendations, and other activities over their entire relationship with a brand is accounted for. In my advisory and consulting work, I’ve had the chance to work with many brands in order to help them define and implement this important method of measurement.
Here are three key components that brands should put in place in order to successfully adopt a customer lifetime value model.
This article was written by Greg Kihlström and originally published on Fast Company. Read the full article here.