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Customers' Lifetime Value

Companies are doing their best to retain customers because customer acquisition is a costly and lengthy process. To maximize their value and long-term results, companies are providing the best possible experiences, that will bring them back to the stores, and even calculating their customers’ lifetime value. Don Peppers and Martha Rogers describe in, Return on Customer, customer lifetime value as “the net present value of the future streams of cash flows a company expects to generate from the customer”. Therefore, customers generate value for the company by “increasing both current and future cash flows”. Peppers & Roggers believe that knowing your customers' lifetime value can guide your company interactions with its different customers. Likewise, at Proto , we know that every customer is different and that customers interact with different companies differently therefore it is essential to adapt communications to them so that you don't miss great business opportunities. The ability to understand lifetime customer needs allows the company to create and market products that can increase the potential customer value. Companies must focus on future transactions and lifetime value, sometimes, at the expense of current interactions. However, most of the companies, are focused on clicks per rate and short term results, disregarding customers’ potentiality.

One challenge in the use of customer lifetime value is the lack of a client holistic view and customer integrated data. In the end, the ability to understand customers from every point of view is extremely important to realize their future buying potential. Proto Partners can help you assess all your present customer interactions, analyze the future potentialities and suggest innovative and feasible solutions to increase future lifetime value.

The most important is to highlight the potentiality of every customers and deliver “optimal experiences across the board”.

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