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All customers are not created equal. Sure, you might like some more than others, but that doesn’t mean they’re your best clients. Sales comes down to revenue and ROI — so how can sales leaders objectively determine which customers are most valuable?

Through a customer lifetime value (CLV) analysis. But calculating CLV isn’t a cake walk — inaccurate data, confusing metrics, and inadequate technology can all block the path. But the organizations that do figure out a customer’s net costs and revenues over their engagement see the benefit: Three-quarters of senior executives in North America categorize CLV as a highly or extremely valuable indicator


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This infographic from Aria provides a CLV primer, explaining the concept, covering how retention and satisfaction play into customer value, and suggesting ways to bump up your average client’s CLV. You’ll find that playing favorites based on net revenue versus rapport is a lot more profitable. 

CLV

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