The holidays are in full swing and hopefully your loved ones’ gifts are not waylaid on a container ship circling the port. The reality is, we’re all affected by a bottle-necked supply chain.
Pandemic-related supply shortages continue to affect inflation, and I truly can’t think of a better time to consider how this may alter the course of your business in the year ahead.
Please read my most recent article where I discuss the effects of supply chain issues on “customer success,” which is the ability of an organization to anticipate the needs of its clients, and to prepare solutions that would remedy that pain or solve a problem before and when it surfaces.
Quick Tip of the Month: Know the Lifetime Value of Your Customers (CLV)
A very important KPI for any business is the true understanding of its Customer Lifetime Value or CLV. CLV is the average spend of a customer with your organization, as long as you do business with them minus the cost of producing the product or providing the service.
Imagine a SaaS business offering a service to its customer for $100 per month and the customer stays for five years. Revenue from that customer for the total life of the relationship will be $6,000. If we deduct the cost of providing services to the average customer (let’s say 30%), the CLV for that customer would be $4,200. Knowing this value would allow any business owner to determine its marketing and lead-gen budgets, and to devise new products and services to keep this client/customer longer and to have them spend more with the company.
At Concepts Rise, we advise our clients to increase their CLV. It’s a fact that it costs less to keep existing customers than to acquire new ones, so how do you increase the value of your existing customers to drive growth? If you need help calculating the “true” CLV for your business, please drop us a line.
Concepts Rise Webinar
To help you generate more revenue in the new year, I’m hosting a free webinar Wednesday, January 19, 2022, from noon to 1 p.m. PT (3 to 4 p.m. ET) titled Attract, Win, and Retain Your Ideal Clients. Joining me is Steve Johnson, a revenue and sales coach with hands-on experience in SaaS, Tech, IT, Operations, Hospitality, and Construction.
Steve and I will help you define the profiles of your best clients, how to win those clients, and create a roadmap for retaining those clients for a long time. Please save the date and join us! We will be sending a registration link in early December.
As a reminder, my firm’s specialty is helping businesses grow revenues by focusing on customer success, operational excellence, and technology innovations.
I encourage you to reach out to me if you’d like help identifying areas where we can improve your customer lifecycle and unlock opportunities to drive revenue growth.
Wishing you and your family a wonderful holiday season!
To your success,
Majid
Majid Abai
Founder & Chief Sherpa
Concepts Rise
P: 424-320-0524
E: majid.abai@conceptsrise.com