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Customer Lifetime Value (CLV) Optimization is the art of maximizing the value of each customer over their lifetime. The higher you can get this number, the more you can spend to acquire new clients and customers, which puts you at an advantage over your competitors.

Baseline

Before you can optimize your average customer’s lifetime value, you have to know what it is. This is the baseline value, and is an essential piece of the puzzle to know and fully understand before you can fully maximize and optimize their value to your business.

Testing

Once you have the average CLV baseline, you can begin experimenting to see how to generate more revenue from each customer, boosting the average value. There are a number of ways to test, including price elasticity, implementing recurring payments, offering sales, upsells, down-sells, cross-sales, and more.

Optimizing

After testing new approaches to maximizing CLV, you’ll be able to determine what works and what doesn’t. With this information, you can refine and systematize your processes to systematically generate the maximum value from each client/customer over time. Bear in mind you should continually test & refine.


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