a lot of enterprises, accustomed to doing a hammer trading, constantly looking for new customers, which is a fatal error restricting the development of an enterprise business. So many enterprises, do very tired, and if your business is the same way, then you need to seriously think about Wang Tong today to you to explore the topic: customer lifetime value mining.
first analyze a case, and then we’ll explore the method:
The United States
host competition in this industry is very powerful, the domain name hosting provider is mainly promoted through joint marketing, but the strange thing is, the host to the Commission may exceed the sales price. For example, the United States IXwebhosting main provider, they hit a host of infinite space unlimited traffic, also donated 15 independent IP, 3 international domain name, you can put multiple web sites, also donated $more than 100 Adwords advertising coupons etc.. The price is very low, just $7.95 a month, which takes only $95.4 a year, but they give joint marketers Commission $95 is how much?. If calculated according to conventional thinking, they must lose money, because the sale of 95 U. s.dollars of products, the Commission gave the alliance promotion, and at the same time they will provide so many independent IP and international domain name, certainly lose money.
if IXwebhosting is losing money, they can’t be among the top players in the industry. They’re sure to make money. So, how do they make money? Why do they want to make a seemingly "lose money" promotion,
: because they value customer lifetime value. From the first year, they do lose money, but most of the customers who buy their virtual hosting will use it for a long time. If a client uses their mainframe for 5 years, then the customer pays them 5 95 dollars over the last five years, so they end up making money. Because their value is the lifetime value of the customer, so they use the tone of the Commission is very high, almost the first year sales to help them promote the alliance members, because the Commission is very high, so much of the world website will help it do promotion, so he was able to develop in in the fierce competition very quickly, and more and more.
so, what is customer lifetime value,
customer lifetime value refers to the sum total of the benefits that each buyer may bring to the company in the future. For example, you have 2000 stable customers who have been working with you for an average of 2 years, and have made a net profit of $1 million 500 thousand over the past two years.
customer lifetime value can be calculated as: 1500000 yuan / 2000 = 750 yuan.
this means that every new customer can bring you an average of $750 in two years.
, if you don’t have numbers, you should actually estimate yourself