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Customer Lifetime Value - How much will you earn from your customer?

How much will I earn with this customer over a lifetime? Can I give a discount now? Knowing your CLV offers a greater strategy for your marketing and finding new sales are possibilities.

Companies have adopted innovative strategies for the conquest and maintenance of new customers. In the scenario of an economy in transition and maturity of Marketing platforms, being able to calculate the Customer Lifetime Value (CLV) becomes a basic differential to implement marketing strategies.

"CLV is a measure of how valuable a customer is to your business, not just in a purchase history, but across the entire relationship. And by knowing it, it is possible to implement differentiated pricing/discounts and CX strategies, for example." (Arian Saddam Hossain)

Apple's recent case

Recognized since 1976 for its focus on creating innovative products, with the sale of computers, iPods or iPhones, Apple announced its decision to reinforce its service offering. Now, Applications gain status as an essential element of their actions in the market.

Among the services, Tim Cook presented a credit card and new subscription platforms for games, news and audiovisual content. Anyway, Apple shows its vision for the future: to be a service company.

Why change? What drives Apple to adopt this new strategy?

In short, the story is this: Apple is adjusting to the changing consumer market. Apple certainly bets on services because it identifies a drop in revenue linked to the sale of equipment. Unlike the last few decades, when it was able to continuously innovate on new devices, the company sees the product market slow down. And when analyzing how it will continue to earn more from its customers (CLV), he realized that the relationship of consumers with the brand is changing.

As a result of the review of the future weight of customers, the company now has a "complete suite of services", capable of making users of its devices continue to spend within its ecosystem.

Apple can win 100 million consumers in its video streaming. The services also generate two advantages for Apple. The first is recurring revenue every month, rather than being paid just once for a sale, in seasonal billing. The other is to help stimulate demand for their devices, as the services will be exclusive to the company's platforms.

CLV: back to concept

What is the value of a customer who remains loyal in the last ten years?

Customer Lifetime Value (CLV) is one of the key indicators to track as part of a customer experience analytics program with your business. It reveals a customer's total value to the company over the entire period of their relationship.

Why it's important?

It's an important metric because it helps define who your best customers are today. Or point out who the preferred customers are in the future. In addition, it is also essential because we know that it costs less to keep existing customers than it does to acquire new ones. So increasing the value of your existing customers is a great way to drive growth. Being able to create new products and services based on this projection of consumer needs becomes crucial.

Want to know more about how CLV can help improve your marketing and sales?

Get in touch with our team of Designers of the Future. Contact:

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