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Customer Lifetime Value simply describes how much money a customer is worth to you over the lifetime of their relationship with you. The more technical definition is this: Customer Lifetime Value is the predicted net profit attributed to the entire future relationship with a customer from the time of acquisition. CLV looks to the future. It is predictive.
Everything has its price. The key to success is whether your pricing matches the value perceived by your target customers. If it does you are set. If your customers value you more than your price implies, you are throwing money down the drain. If your customers think you are overpriced, then either you are a monopoly, or you don’t actually have any customers. Pricing does not exist in a vacuum.
Why do customers buy things? The obtuse answer would be because they need them. But this does not really answer the question. Not so long ago our choices were limited. There were fewer brands as we call them today. There were less choices to make. It was a seller’s market. Sellers focused on decreasing costs and increasing volume and becoming efficient.
To sell to your customer, you must know your customer. You cannot solve your customers’ needs if you do not know what they are. You cannot reach your customer and grab their attention if you do not know where to find them. You cannot engage with them with any type of marketing tactic unless you have some understanding of their needs, wants, and desires.
If my hair had not fallen out due to natural causes I probably would have pulled it out by now. I set aside a chunk of time every day to read the latest punditry on content marketing, SEO, and other digital topics. Every day I read a statement along the lines of “traditional marketing is dead.” Every day I scream in frustration; silently mind you, because I don’t want to scare the dog.