Some of the most successful companies in the services sector such as Amazon, Facebook, Apple, Google, Alibaba and Netflix have mastered the art of what is known as Customer Lifetime Value (CLV). This is a detailed study on the overall value that customers individually generate over the course of their respective lifetime. This business intelligence emerges after extensive quantitative analysis as well as the presence of a long term corporate strategy aimed at acquiring and building relations with customers. A particular study was conducted which detailed that beyond just meeting customers’ needs and delighting them, companies must proactively engage in developing the human capital of customers. A business can consider itself having the grip of customers when they can continue to benefit from industry innovations. Specific sessions must be held within company confines top discuss an investment innovative approach towards customers. Ultimately customers become more valuable to firms when they provide insightful ideas, promote the brand on social media, enable in cost reduction and try new products. They must also be ready to share their data with the firm and engage in collaboration.

Source:https://hbr.org/2017/04/what-most-companies-miss-about-customer-lifetime-value?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29

Uploaded Date:10 July 2017