What is customer lifetime value, and why is it important?
Customer Lifetime Value and why it is the Holy Grail in Business?
What a customer has the potential to spend with your company over their lifetime is a critical piece of information when deciding what type of business you wish to start. Unless I am selling jets and islands I need a repeat customer. We have determined in one of my service companies that an average customer will use us every 2 years and the expenditure just keeps getting bigger. It is not uncommon for us to have a customer spend 25k on the low end a lifetime customer and some up to 100k.
