This is why CLV should be the 'North Star' metric of retail.
No matter the company or the industry, the basic building blocks of business remain the same — customers need to spend more money with you than you spend on them. Couple this with the fact that there are some customers in your customer base who spend a lot more money with your business than the majority of your customers, and you might start to realize why Customer Lifetime Value should be the Northstar metric for all retail organizations.
Delving into customer-journey specifics for those high-ROI top shoppers can inform strategy and help you be more strategic in your acquisition efforts. Just 10 or 20 years ago, retail businesses had certain advantages by just existing. Certain points of friction enforced customer loyalty by default. In a world like this, you can’t compete on price, and it’s no longer enough to win based on the location of your retail stores or superior distribution.
For some retailers looking at their CLV reports, they might notice that their drop in revenue was directly caused by churning high-value customers. Another retailer might find that they have a problem converting one-time buyers to repeat shoppers. One of the best ways to increase CLV is to give customers a reason to stick with you. This could mean providing a rewards program, VIP perk, or sales targeted to repeat buyers.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
I Tried That Hangover Cure From “Shark Tank” and I Was Really ImpressedI hate being hungover, so I tried Cheers, a supplement for hangovers, and my life has been changed for the better.
Read more »
Meet the Brand Making Airbrush Tank Tops in Protest of ICE'Airbrush and graffiti style has a history of resistance which perfectly aligns with our intention behind Fuck ICE. We chose red and blue to symbolize the American flag; we wanted to be patriotic, while also sending a message.'
Read more »
These moves can tank your credit scoreExperts warn that other moves you make can drag down your score.
Read more »
Keeping Up with Kourtney Kardashian's Diet Is Easier Than You ThinkShe starts every morning with collagen supplements and apple cider vinegar.
Read more »
Sen. Murphy on the NRA: They aren’t as powerful as people thinkPresident Trump appears to be backing down on stronger background checks, soon after his promise to support legislation. But his aides insist he's just hitting pause. Democratic Senator Chris Murphy joins Craig Melvin to discuss Trump’s quick stance reversal.
Read more »