#41 Sustainable Growth
You know what they say – it's easier to keep an existing customer than to find a new one. And yet, we often find ourselves pouring all our energy into acquiring new customers, neglecting the potential for growth that lies within our existing audience and customer base.
To achieve sustainable growth in your business, it's crucial to focus on serving your customers for a longer duration and offering them more value. Whether that's through additional products, recurring subscriptions, or continuous support, the goal is to increase your customer lifetime value.
As a community-driven business, your mission is to serve your community members over an extended period of time because they're looking for transformation.
Each step of their journey presents a fresh opportunity for you to provide meaningful support and guidance.
Every interaction with your customers is a chance to make a positive impact, deepen their loyalty, and ultimately increase the value they bring to your business.
So embrace this mindset, and let's find creative ways to serve your community throughout their entire journey.
If you're ready to get creative, jump to the guide below. If you want to better understand customer lifetime value, I've pulled the calculation and definitions for you here:
Let's Define Customer Lifetime Value
Customer Lifetime Value (LTV) is a metric that measures the total value a customer brings to your business over the course of their relationship with you.
In simple terms, it's the amount of revenue and profit you can expect from an average customer during their entire journey with your business.
Calculating LTV may seem intimidating at first, but trust me, it's not as complex as it sounds. Here's a simple formula you can use:
LTV = Average Purchase Value x Purchase Frequency x Average Customer Lifespan
Let's break it down further:
Average Purchase Value:
This is the average amount a customer spends each time they make a purchase from your business. To calculate this, add up the total revenue generated in a specific time period (let's say a month) and divide it by the total number of purchases made by all customers during that period.
Purchase Frequency:
This refers to how often your customers make purchases. Calculate this by dividing the total number of purchases made by all customers during a specific time period by the total number of unique customers in that same period.
Average Customer Lifespan:
This represents the average duration of a customer's relationship with your business. To determine this, you'll need to analyze your customer data and calculate the average time between a customer's first purchase and their last.
By multiplying these three factors together, you'll have an estimate of your customer lifetime value (LTV).
Keep in mind that LTV is not a fixed number and can vary based on various factors such as customer segments, product lines, or even marketing efforts.
It's Time To Increase Your LTV
I'm so excited to announce that I've created a new free resource to help you map your community journey so that you can learn exactly how to increase your LTV.
Click the button below to get instant access - no email or anything else required. I had so much fun creating this for you... reply and let me know what you think!
Your 3-Part Guide To Community Journey Mapping
Learn the simple, proven process for mapping your community journey so you can leverage your greatest opportunities for customer engagement and understand how to serve your specific audience.
