SPECIAL REPORT
It’s a fact: customers are any company’s most valuable asset. Marketing and selling to customers, then, requires a skill at cultivating relationships beyond the basic tools marketers have traditionally relied on.

Most important, customers are your scarcest resource. You can’t really replace one.

To compete effectively today, an organization must truly understand its customers and treat them as individuals. In order to do that, customer differences must be understood. Based on a customer’s value, a company can determine how much time and investment should be allocated to that customer from both a marketing and service point of view. The key to keeping each customer is determining that customer’s needs.

If a company acknowledges that each customer is unique, then it makes sense that some customers are more valuable than others. The concept of lifetime value (LTV) has emerged as an essential analytic discipline for companies that balance short-term financial goals with long-term customer strategy. Customer strategists Don Peppers and Martha Rogers, Ph.D., define LTV as the net present value of the future stream of cash flows a company expects to generate from the customer.

Yet, as a small business owner, you may not have the level of data required for such an advanced analysis. Using a simpler formula, LTV is still a highly valuable metric. In the following report, we’ve provided details on the specifics of customer value and how defining it to understand your customer landscape can help your company reap more profits, reduce costs and strengthen customer relationships.

The special report is only available to PREMIUM Members.

Take-away points include:

• Start by segmenting your customers in to value tiers (Most Valuable, Most Growable, & Below Zero)
• Articulate your strategy and approach for each tier
• There are many formulas to calculate customer value. But the real work begins after you’ve determined a customer’s profitability in hard dollars.

This work includes:

• Structuring profitable promotions
• Designing early warning systems for defectors
• Creating VALUABLE customer acquisition strategies

Download the full report

Related posts:

1. Building a Foundation: Developing Customer Profiles
2. Balancing Short and Long Term Marketing Strategies
3. On Your Toes: Staying Focused in the Upswing
4. Developing reciprocal business relationships
5. SFA: Putting Power into Your Sales Efforts