In [[The Personal MBA]] the concept of //''lifetime value''// is introduced to denote the total value of customers business over the lifetime of their relationship with your company. One of the best methods to increase lifetime value are [[Subscriptions]]

!Key Points:
* Lifetime Value is the total value of a customer’s business over the lifetime of their relationship with your company.
* The more they purchase from you, and the longer they stay with you, the better the value. the higher the Lifetime Value, the more you can do to keep them happy.
* By understanding how much a customer purchases and how long they stay with you, you can place a tangible value on each new customer.
* It’s much better to operate on markets with high Lifetime Value.

!Questions for Consideration:
* What is the average lifetime value of a new customer for your business? Is it high or low?
* What could you do to increase the lifetime value?
bag
mbi_public
created
Sat, 14 May 2011 14:40:13 GMT
creator
dirkjan
modified
Sat, 14 May 2011 14:40:13 GMT
modifier
dirkjan
tags
The Personal MBA
creator
dirkjan