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Casual Articles - Customer Lifetime Value - CLV - What Does it Really Mean?
Invest some time in evaluating the skills and type of person you want for a position before placing a job advertisement or registering a job vacancy with an employment agency.The job specification (spec) is a tailored description of the vacancy including the responsibilities of the incumbent and goals of the job. The person specification is a profile of the person you consider best fits the bill. Preparing a detailed spec helps you focus on exactly what skills you seek. The finished document assists your HR or personnel department or recruitment consultant in identifying candidates for you to interview. It's also a great exercise in re-evaluating your departmen
Once established, you can use your CLV as a benchmark for developing a realistic customer acquisition (or retention for
Another year has passed and it’s time to make your New Year’s resolutions. While others will be hitting the gym and chomping on nicotine gum, you can get a leg up on your competition with these hiring techniques to build your workforce in 2006.Hire Slow, Fire FastThe first and most important resolution you can make in the New Year is to stop waiting until the last minute to hire a new employee and stop letting the dead weight in your department drag the rest of the group down. Management is not an easy task, and hiring always seems to end up on the bottom of the ‘to do’ list. Because of this, managers always tend to rush the hiring process since they,
The hardest part of calculating CLV is figuring out exactly what your customers’ “lifetime” really is…. and the only accurate way to arrive at that number is by getting, storing and analyzing your customers’ data. Period. If you’ve been in business for a while, this should be easy to get, but if you’re a start-up you’re going to have to estimate this based on industry standards.
Although there are several ways to arrive at CLV, the easiest is to calculate:
1. The average length of time a customer stays your customer
2. The number of transactions that an average customer will have with you during that time and
3. The average dollar amount per transaction
Multiply these together and you’ll arrive at a usable number. But remember, junk in, junk out… so make sure your original numbers are accurate!
Once established, you can use your CLV as a benchmark for developing a realistic customer acquisition (or retention for
If you're like most freelance copywriters and other solo entrepreneurs, you get rattled when it’s time to talk about money with your clients. You may feel like you are being greedy or sleazy, or you might worry that your fees are too high or too low. Inevitably, though, you must state a price for your service or product. And if you’re serious about making a good living in your solo enterprise, you must command a reasonably healthy price.After 20 years as a freelance copywriter, I feel very comfortable stating my fees. In fact, I even enjoy it. With some practice, you may grow to enjoy it, too. And you’ll certainly reap economic rewards if you do it right.
The hardest part of calculating CLV is figuring out exactly what your customers’ “lifetime” really is…. and the only accurate way to arrive at that number is by getting, storing and analyzing your customers’ data. Period. If you’ve been in business for a while, this should be easy to get, but if you’re a start-up you’re going to have to estimate this based on industry standards.
Although there are several ways to arrive at CLV, the easiest is to calculate:
1. The average length of time a customer stays your customer
2. The number of transactions that an average customer will have with you during that time and
3. The average dollar amount per transaction
Multiply these together and you’ll arrive at a usable number. But remember, junk in, junk out… so make sure your original numbers are accurate!
Once established, you can use your CLV as a benchmark for developing a realistic customer acquisition (or retention for
I read through the copy on The Rich Jerk site, and found it a little entertaining that this character was employing a strategy of insulting potential customers and affiliates. And it looks like it's working.I guess, being a foul mouthed tout is lucrative, for This Rich Jerk. His e-book on Click Bank is ranked #1 in the Money and Employment category. And they are willing to impart their hard gained knowledge to you if you buy The Rich Jerk e-book for $9.95 (I just noticed the price drop 01-23-2007). If you ask me it was probably the best money I spent, but it's not that easy. Especially when you start combing the web for money making opportunities, you'll probab
Although there are several ways to arrive at CLV, the easiest is to calculate:
1. The average length of time a customer stays your customer
2. The number of transactions that an average customer will have with you during that time and
3. The average dollar amount per transaction
Multiply these together and you’ll arrive at a usable number. But remember, junk in, junk out… so make sure your original numbers are accurate!
Once established, you can use your CLV as a benchmark for developing a realistic customer acquisition (or retention for
It has long been acknowledged that it is easier and cheaper to get more business from your existing customers than it is to get any business from somebody who has never done business with you.Your customers already know you and their business is more profitable for you because there is no advertising cost involved.A referral system, upselling and backend selling are all worth trying if you wish to increase the income you get from your customers. They can be used for marketing online or offline and they cost little or nothing to put into practice.It is a good idea to instigate a system of getting referrals from satisfied customers. The referral sys
1. The average length of time a customer stays your customer
2. The number of transactions that an average customer will have with you during that time and
3. The average dollar amount per transaction
Multiply these together and you’ll arrive at a usable number. But remember, junk in, junk out… so make sure your original numbers are accurate!
Once established, you can use your CLV as a benchmark for developing a realistic customer acquisition (or retention for
It is worth covering the motivations of 3rd party recruiters, that is, executive search firms and other retained or contingent recruitment agencies.The basic starting point is that these firms and their individual partners, associates, or support staff, are under no obligation to talk to you. They owe you nothing. Harsh, but true. The client of the search firm is the hiring organization. That is rule one.However, rule 2 is that they need candidates that FIT their current and future assignments in order to do their job. That's where you come in.So, let's drill down a bit and examine what the reasons or circumstances are in which a headhunter might
Once established, you can use your CLV as a benchmark for developing a realistic customer acquisition (or retention for that matter) budget. For example, let’s say you find out that your average customer:
1. Stays with you for 5 months
2. Purchases something from you 3 times per month
3. Spends an average of $2 per transaction
In this case your average CLV would be $30. Based on this, it would be foolish to spend even $20 to gain one customer… you’d be left with little, or no, profit (unless of course, your margins are outrageously high). On the other hand, your customers may hang in there for 22 months, spend $20 per transaction and purchase from you a greater number of times. Since your CLV would be much higher, you could afford to pay more to gain a customer. Again, the specifics differ widely and there are many factors to consider, Also note that this does not include any costs associated with preserving this customer relationship. In the real world these must be included.
It is crucial that you understand your CLV and use it to guide your communication decisions! (A good book on this subject
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