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Reading: Customers Actually Have a Life Cycle, So How Do You Maximise The Value Of Your Customers?
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Home > Marketing > Customers Actually Have a Life Cycle, So How Do You Maximise The Value Of Your Customers?
Marketing

Customers Actually Have a Life Cycle, So How Do You Maximise The Value Of Your Customers?

When calculating the cost of customer acquisition, it is important to measure the entire life cycle of a single customer

Last updated: May 11, 2025

The more money you can make from a customer, the more it represents the customer value. People often talk about how it is better to make 10 one-off customers than to make one customer for life, and this is the customer cycle value.

Today we'll talk about the customer lifecycle value, which represents how much money a single customer spends on your side over a lifetime or period of time.


I'll give you an example: a customer in your side of the continuous consumption of 10 years, and then did not come, within these 10 years, each year in your side of the consumption of 10,000 yuan, then the total is 100,000 yuan, that is, the value of this customer is 100,000 yuan sales, this time, we calculate the cost of the customer, you can not be a single consumption of how much to calculate, if, say, in a customer spent 20,000 yuan customer acquisition advertising costs, then sales of 100,000, accounting for only 20% of the cost, the calculation is still relatively cost-effective, if only spend 10,000 will be more cost-effective.

So we calculate the cost of customers, must be measured from the entire life cycle of a single customer, it is possible that within a short period of time, feel that the cost of customers is very high, or even not profitable, this time to give up, it is a great pity, must be seen from the long-term, is not profitable, as long as beneficial, you can drag in more customer capital.


Since the customer life cycle is so important, then there is no way to maximize the value of the customer life cycle?
1, you can increase the unit price of a purchase.
2, You can increase the frequency of the customer's purchase.
3, You can extend the customer's purchase cycle.
4, You can compress your customer costs.
5, you can also reduce the customer's after-sales and maintenance costs, etc.


Finally, many entrepreneurs may say they don't know what the customer lifecycle is, but there is no way to measure this! Want to understand, you can only see from peers or a variety of data, in the past, generally speaking, a normal customer will cooperate for how long, or that we cooperate with a customer, set themselves, a customer minimum to be able to cooperate for more than 3 years, this for the minimum standard, and then the rest is how to lock the customer this three years of consumption.

TAGGED: Marketing, Cycle, Profit
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