Most marketing people I talk to don’t know their client retention rate and their CLTV.
Why is it important to know these 2 metrics?
As a marketer, your number one job is to get clients right? Wrong!
Your number one job is to increase your return on investment!
Because a business invests in marketing to increase its Profits and NOT Revenues.
In this case, it is crucial for YOU as a marketer to be involved not ONLY in marketing but other functions as well, so you understand the entire customer journey and be able to improve that, so customers get a good experience using your business, and continue doing so.
It is crucial for you to know how the sales people handle your leads or sales. It is crucial to know how your customer service handle clients queries. Also your operation staffs output.
When you are involved in these functions, know how they deal with new and existing clients, and ensure they do it the right way, your churn rate decreases, and your CLTV increases.
This is when your marketing investment starts giving you a higher return on investment.
Another highly important element that you MUST activate to decrease your churn rate and increase your CLTV is marketing automation. I created other videos around that topic recently that you can also watch.
What are you doing as a marketer to increase your business profitability? Let us know in the comments below.