Customer lifetime value (CLV) is a digital marketing term used to describe the total amount of money your business will earn from a customer during the entire relationship with said customer. Essentially, CLV is how much money a customer has already spent at your company combined with how much money you estimate they will spend in the future.
How CLV impacts your digital marketing campaign:
- It will have an impact on how frequently you contact different customers. For customers who are frequent shoppers and have opted in to know about special deals and promotions, they will be contacted more frequently than those who aren’t frequent shoppers and who have opted out. Customers who aren’t frequent shoppers might receive a gentle reminder every few months about a new product or service, whilst frequent customers will be contacted more often.
- It will have an impact on the content. You can’t just send a one-size-fits-all e-mail to every customer; frequent shoppers will probably be open to content that has a friendly, more casual tone, while customers who haven’t made a purchase for a while may need to be reminded about what’s new and made aware of any changes.
- CLV can help you identify one-time customers and reach out to them. If there are a handful of customers who only made a single purchase and never came back for more, it’s the perfect opportunity to contact them and ask for feedback. Their feedback will be valuable for you in discovering areas for improvement.
For more information about how WSI eBiz Solutions can help grow your Atlanta business with digital marketing, to find out about the variety of other services we offer, or if you have any questions, please do not hesitate to contact us today. We look forward to hearing from you.
About the Author
Rick spent 20 years in the insurance industry in finance, primarily developing reporting platforms for B & C stakeholders. His ability to speak to consumers of data (managers and analysts) and translate their needs to programmers led him to start his own digital marketing agency in 2004 to develop data driven solutions for business owners.
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