The CLV Revolution: Transform Your Ecommerce with Customer Value Optimization

many KPIs focus on what the company gets, rather than what the company gives.

The acquisition will always be tied to growth, but the mantra of “acquire, acquire, acquire” is ill-conceived. With CLV at its center, the new mantra is “acquire, inquire, acquire.” See what I did there? Inquiring into why your customers buy, whether you are reading the story of the data, or asking them directly, will help avoid churn and burn.

CLV shows you the predicted profit, over time, that a customer will bring you.

one north star metric that can capture the essence of a company’s health: Customer Lifetime Value.

way, as you acquire new customers, you create the right scenarios to invite them back.

Your spend needs to be about much more than blindly throwing money at acquisition ads. It has to be wrapped up in a learning equation that involves elements such as the following: • Studying your customers • Understanding buying habits • Doing research • Analyzing post-purchase touchpoints • Customer journey optimization.

Acquisition marketing alone does not work long term for all business models. If what you sell gets bought multiple times, it may work for short bursts, but in the long run, it’s called “churn and burn” for a reason—you will burn yourself out.

you must understand another vital metric: the CAC Payback Period. In a nutshell, the CAC Payback Period is the time it takes for your company to earn back your customer acquisition costs.

knowing the right dosage of acquisition comes into play. Can you actually have too much? Yes. And when it’s too much, you endanger your company by over-relying on traffic acquisition, or on paid acquisition, or on acquisition itself.