The Jasmine Star Show Understanding and Increasing Your Customer LTV (Lifetime Value): Five Strategies to Make More Money From the Same Customers
Did you know that a big (BIG!) chunk of sales actually comes from existing customers?
How big? Well, I’m so glad you asked.
Think of it this way: research shows that, while most businesses make sales to anywhere between 5-20% of NEW customers, they close deals with 60-70% of EXISTING customers.
This means your likelihood of making a sale is doubled when targeting existing customers compared to acquiring new ones.
This is why your Customer Lifetime Value is so important to figure out and I’m literally giving you the formula to compute it. (It quite possibly may be my favorite math equation to date!)
In this episode, you’ll learn my four-step framework for calculating LTV and my five favorite strategies to boost it.
Click play to hear all of this and…
(00:00:01) How understanding your LTV can grow your business exponentially.
(00:03:08) The importance of existing customers.
(00:05:14) An equation and clear instructions for calculating customer lifetime value.
(00:13:29) Five strategies for increasing your LTV.
(00:18:56) The power of under-promising and over-delivering (and how to do it effectively.)
(00:20:04) How gamifying your offers or programs (like a reward system) can help keep customers engaged and loyal.
(00:22:49) Ways you can increase the average purchase value AND enhance their experience.
(00:26:00) Your next step after listening to this episode
Sources and resources discussed in this episode:
Listen to my podcast episode, How to Create an Unforgettable Experience >>HERE<<.
How to Calculate Your Customer Retention Rate, Max Freedman.
Customer Data: Designing for Transparency and Trust, Timothy Morey.
Step by Step Instructions to calculate your LTV using this equation: A × B × C =
**(**Listen to the full episode for further explanation.)
Step 1: Calculate your Average Revenue Per User, aka ARPU.
Step 2: Determine the average lifespan of your customers.
Step 3: Find your Gross Margin Percentage.
Step 4: Multiply the variables in the equation.
For full show notes, visit: