What does ‘Best Customer’ mean to you? Everyone may have a different answer

[shaownhasan]

Customer Lifetime Value
Before that, do you know how much your customers value?

How much is your customer worth?


The answer is yes! It depends on how much "coffee" they drink. Think about all the australia email list coffee you would buy from Starbucks over the years. Worth $500k? $1 million? $2 million? How about $14,000? Absolutely!

Starbucks calculates that their average customer lifetime value is $14,099. Knowing this number for your company can drastically change the way you look at marketing. Starbucks marketers know that they are not selling a $5 cup of coffee; they are acquiring a $14,000 customer.

e-commerce business
What segments can you create based on the retention rates above: low-value ( high-churn ) or high-value (HCV) customers? How can you target these segments with email marketing?

Who are your high-value customers ?
The most profitable customers. The most loyal customers. The easiest customers to attract and retain, or all of the above? They are high value customers (HCV). This is also sometimes referred to as Customer Lifetime Value (CLV). To identify HVC, you first need to calculate the Customer Lifetime Value (CLV) of each customer, then rank them based on the results. The higher the CLV, the more valuable the customer is. Check out this tool to calculate your Customer Lifetime Value (CLV).