What Can a Sneaker Store Teach You About Customer Lifetime Value?

This week, we're diving into the world of Customer Lifetime Value (CLV) and why it's like a secret superpower for your business. Imagine you've opened a cool sneaker store. You're probably wondering, "How do I make my business a huge success?" Well, let’s lace up those sneakers and start this journey!

Customer Lifetime Value (CLV) is one of the cornerstone pieces I covered in a previous newsletter, No Secrets to Marketing Success... Just Lots of Preparation & Planning, and I encourage you to check that out for more details on CLV and more HERE.

What’s CLV and Why Should You Care?

CLV stands for Customer Lifetime Value. It’s a fancy term, but it's pretty simple. It's all about figuring out how much money a customer will spend in your store over time. Think of CLV as a crystal ball that helps you see into the future of your business.

Making Smart Choices

Knowing your customers' CLV is like having a guide for your business. It helps you decide where to spend your money. Should you put more into ads to attract new customers, or focus on making your current customers super happy? CLV helps you answer these big questions.

Finding Your Star Customers

In any game, some players are the MVPs, and it's the same in business. Some customers are more valuable than others. CLV helps you spot these stars so you can treat them like VIPs.

Saving Money

Guess what? It’s usually cheaper to keep your current customers than to always look for new ones. CLV helps you figure out how to keep your customers around without spending too much.

Planning for the Future

CLV is like your business’s fortune teller. It gives you a peek at how much money your customers will bring in later. This way, you can plan better and grow your business.

Being Different

When you know what your customers like and how much they’ll spend, you can make your sneakers even cooler. This sets you apart from other stores.

Happy Customers, Happy Business

Understanding your customers better means you can make them happier. And happy customers often come back for more!

Making More Money

In the end, it's all about making your sneaker store a hit. By focusing on high-value customers, you can boost your profits and keep growing.

CLV in Action: Your Sneaker Store

Meet Alex and Jamie, two of your customers. Alex buys a pair of sneakers every year, but Jamie buys four pairs a year. Jamie is your star customer because they spend more money at your store. You might decide to send Jamie special deals or sneak peeks at new designs to keep them coming back.

More Cool Things You Can Do with CLV

1. Finding the Perfect Customers: Figure out who loves your sneakers the most.
2. Smart Spending: Be smart about where you spend your money.
3. Building a Fan Club: Keep your customers excited and loyal.
4. Growing Your Business: Use CLV to expand your store wisely.
5. Standing Out: Make your store the coolest spot in town.
6. Making Tough Choices: Use CLV to help make big decisions.
7. Long-Term Thinking: Plan for the future, not just today.

Tools You Can Use

As a DigitalMarketer Certified Partner, we have access to tools you can use to bring this to life in your business. One of those is called the Customer Value Journey, and its a roadmap that helps you create a repeatable and predictable process for your customers to follow through their full experience with you. Here's a copy of it for you to experiment with...

If you're interested, I'd be happy to walk you through how this roadmap works, and go even deeper into it with our Double Your Sales Discovery session and our 90 Day Accelerator program.

Shoot me a message here on LinkedIn, or email me at [email protected].

Check this podcast

Adding this podcast after the original posting of this newsletter because it was too relevant not to share. Definitely worth checking out for deeper context!

"Lifetime Value Nuggets: Deciphering Customer Metrics" by Perpetual Traffic Podcast hosted by Perpetual Traffic 's Ralph Burns and Kasim Aslam .

Check out the full episode HERE (please note, that's the Apple link, so if you're on another platform, you'll have to search it up!).

Wrapping Up

CLV isn’t just a business term; it’s your secret map to treasure in the business world. By focusing on CLV, you can turn your sneaker store (or any business) into the talk of the town. So, keep your eye on CLV, and watch your business sprint to success!

Does it make sense to talk to someone about looking at your marketing from a strategic perspective?

Want to know what this could look like for your business?

Tired of wasting money on tactics that never seem to work the way they were promised in that video?

Finally ready to accept that there are no secrets, hacks, or tricks to real growth and success?

You can reach me in one of 3 ways:

1. Send me a direct message right here on LinkedIn
2. Email me at [email protected]
3. Visit https://www.gocap3.com/, check out the site, and then fill out the contact form

About CAP3

The way you used to run your business won't work anymore if you want to keep growing.?With CAP3, you get an entire team of finance and marketing experts who know how to support a business like yours in growth mode.?To keep up the pace and stay on the path to greater success, click HERE to contact CAP3 today.

The mission of CAP3 is to be the trusted advisor for small businesses owners just like you across our country. We endeavor to provide you with accurate, complete, relevant, and actionable information and insight that help you make the best decisions possible for your business.

Our goal is that your life will never be the same because of the impact CAP3 had on you personally and professionally. All of us at CAP3 welcome the chance to meet you and look for ways we can support you and your business.

Talk soon!