How do you communicate and demonstrate the value of CLV to your stakeholders and management?

1 Explain the benefits of CLV

The first step is to explain the benefits of CLV for your business and how it aligns with your goals and vision. You can use examples and scenarios to illustrate how CLV can help you increase customer loyalty, retention, and profitability, as well as reduce acquisition costs, churn, and risk. You can also show how CLV can help you segment your customers, identify your most valuable segments, and tailor your offers and messages to them. By highlighting the benefits of CLV, you can create a common ground and a shared understanding with your stakeholders and management.

2 Show the data and the methods

The next step is to show the data and the methods you use to calculate and track CLV. You can use charts, graphs, and dashboards to visualize your CLV data and show how it changes over time and across different segments. You can also explain the formulas and assumptions you use to estimate CLV and how they reflect your business model and customer behavior. You can also compare your CLV data with other metrics, such as customer acquisition cost (CAC), customer satisfaction (CSAT), and net promoter score (NPS), to show how they relate and support each other. By showing the data and the methods, you can establish credibility and transparency with your stakeholders and management.

3 Address the challenges and the limitations

The third step is to address the challenges and the limitations of CLV and how you overcome them. You can acknowledge the potential pitfalls and biases of CLV, such as data quality, accuracy, variability, and uncertainty. You can also explain how you deal with them, such as using multiple methods, testing different scenarios, validating your results, and updating your data regularly. You can also discuss the trade-offs and the constraints of CLV, such as short-term vs long-term goals, budget vs value, and customer vs shareholder interests. By addressing the challenges and the limitations, you can show realism and humility with your stakeholders and management.

4 Provide actionable insights and recommendations

The fourth step is to provide actionable insights and recommendations based on your CLV data and analysis. You can use your CLV data to identify opportunities and gaps in your marketing, sales, and retention strategies, and suggest ways to improve them. You can also use your CLV data to prioritize your customers, allocate your resources, and set your targets and incentives. You can also use your CLV data to forecast your future revenue, growth, and profitability, and evaluate your performance and return on investment. By providing actionable insights and recommendations, you can show value and impact with your stakeholders and management.

5 Solicit feedback and collaboration

The fifth step is to solicit feedback and collaboration from your stakeholders and management on your CLV data and analysis. You can ask for their opinions, questions, concerns, and suggestions on your CLV approach and results. You can also invite them to contribute their own data, insights, and expertise to enrich your CLV analysis and make it more relevant and comprehensive. You can also seek their support and endorsement for your CLV initiatives and plans, and offer your help and guidance for their CLV needs and goals. By soliciting feedback and collaboration, you can show respect and engagement with your stakeholders and management.

6 Follow up and communicate regularly

The sixth step is to follow up and communicate regularly with your stakeholders and management on your CLV data and analysis. You can update them on your progress, achievements, and challenges with your CLV projects and activities. You can also share your learnings, best practices, and success stories with your CLV efforts and outcomes. You can also solicit their feedback, collaboration, and support for your CLV improvement and innovation. By following up and communicating regularly, you can show commitment and accountability with your stakeholders and management.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?