When a big-spending customer missed her flight, an airline ticket counter clerk offered to put her on standby — for an additional $75.
Do you think that big spender will fly with them again?
Customer retention is key to growing profits. You need to identify your company’s VIP customers and store the information so that everyone who contacts them can access it.
What you can do: Use this simple formula to calculate customer lifetime value. The four key components needed to develop a comprehensive CLV model are:
Mix these ingredients together and we get the resulting Customer Lifetime Value formula:
(GP - CAC) * (RR / (1 + DR - RR)1
Then store all the data you have about your most valuable customers in a cloud-based app, and make it accessible to the employees who need it.