Customer Experience 2.0
How to get maximum value from your customer relationships by thinking about how you can develop long-term relationships with them and considering their life time value.
Fact – it costs five times more to attract a new customer than to retain an existing customer. (eMarketer 2002)
Fact – a 5% increase in customer retention yields profit increases of 25% taking it up to 95% (Bain and Company 1990)
It therefore, seems common sense to look after the customers we already have, really get to know them and develop a personal long-lasting relationship with them.
Life Time Value of Customers
Building on this approach of developing long-term and understanding relationships with our customers, we can now start to think about them in terms of what is known as their Life Time Value (LTV) rather than a “one-off”…