Total Customer Value
Understanding the core drivers of Total Customer Value is critical to building the growth engine of any business.
Companies constantly under-estimate what a customer is truly worth by not capturing all the value acquiring a customer brings.
Common drivers:
- Higher ACVs / Average Deal sizes
- Increased Usage / Functionality which drives expansion revenue
- Lower churn, higher retention and higher LTV
- More upsells
- More cross-sells
- Increasing pricing
- Driving more referrals with higher NPS / satisfaction
- Better onboarding to increase conversion rates and usage
Correctly understanding Total Customer Value is the key to scaling sales and marketing. It tells you how much you can truly spend to acquire a customer.
The higher the total customer value, the more you can spend. The more you can spend, the more of the market you can capture.
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