Incorporating Customer Lifetime Value (to improve, buy or sell)
I avoid using future revenue projections when selling businesses unless sellers can provide me with evidence to ensure their accuracy. Most cannot, and nobody can tell the future, so exact will never be possible; however, it is possible to get close. If used effectively, this is what CLV does. It’s a commonsense metric that I find amazing. In simple terms, if you keep the customers happy, they will buy more, cost less, and help a business grow faster (& monitor progress for improvement).
For complete article visit https://bizbyandre.com/blog-details.php?id=44
? #BusinessStrategy #Entrepreneurship #Success