The secret of strong and sustainable growth
Posted: Sun Apr 20, 2025 6:16 am
Great brands achieve above-average growth. This is partly due to their brand as a strong growth driver, but not only that. They also pursue specific strategies for scaling sales, three of which we'll introduce you to in this section.
Der Customer Lifetime Value
Customer lifetime value calculates the profit generated by a customer during his/her entire relationship with the company.
Especially in performance marketing, our focus is often on acquiring new customers. We focus heavily on the profit generated from the first purchase. Instead, optimization should be much more focused on repeat purchases. Customers often use the initial purchase merely to test the brand and build trust. Once the product has proven successful, they will purchase sweden phone number data additional products. The value a customer brings to the company is therefore greater than just the revenue generated from the initial purchase. This is important to know. And: It is generally cheaper to convince an existing customer to make a repeat purchase than to convince someone without a business relationship to make an initial purchase. In other words: acquiring new customers can be expensive. Therefore, in order to decide how much a new customer acquisition can cost to be profitable, it is essential to know how much profit a customer brings throughout their entire relationship with the company. The customer lifetime value tells you exactly that.
How can you increase your company's revenue through customer lifetime value? Two strategies:
If you know how much new customer acquisition can cost to remain profitable, you can pursue new customer acquisition much more aggressively. To achieve strong business growth, it's important to maximize all potential and reach as many new people as possible. The goal is always to operate at the very limits of profitability so as not to waste any potential. This is only possible if you truly know your profitability.
Der Customer Lifetime Value
Customer lifetime value calculates the profit generated by a customer during his/her entire relationship with the company.
Especially in performance marketing, our focus is often on acquiring new customers. We focus heavily on the profit generated from the first purchase. Instead, optimization should be much more focused on repeat purchases. Customers often use the initial purchase merely to test the brand and build trust. Once the product has proven successful, they will purchase sweden phone number data additional products. The value a customer brings to the company is therefore greater than just the revenue generated from the initial purchase. This is important to know. And: It is generally cheaper to convince an existing customer to make a repeat purchase than to convince someone without a business relationship to make an initial purchase. In other words: acquiring new customers can be expensive. Therefore, in order to decide how much a new customer acquisition can cost to be profitable, it is essential to know how much profit a customer brings throughout their entire relationship with the company. The customer lifetime value tells you exactly that.
How can you increase your company's revenue through customer lifetime value? Two strategies:
If you know how much new customer acquisition can cost to remain profitable, you can pursue new customer acquisition much more aggressively. To achieve strong business growth, it's important to maximize all potential and reach as many new people as possible. The goal is always to operate at the very limits of profitability so as not to waste any potential. This is only possible if you truly know your profitability.