There are two factors that directly influence LTV:
Posted: Sun Jan 12, 2025 7:09 am
What is Lifetime Value?
The Lifetime Value (LTV) is a metric that measures the profits that a customer can generate for a company throughout the business relationship.
This KPI is one of the most important in sales.
Acquiring new customers will always represent a greater investment of time and resources than retaining current customers.
However, many companies do not take this into account and put all their efforts into acquiring new customers, leaving aside what they could do to increase the retention of existing ones.
Measuring the profit russia telegram data margin (even if only predictively) that each client represents over the average duration of the business relationship is the first step in finding ways to increase it.
The quality of the product or service.
The accompanying service delivery from both vendors and the customer service/support team.
This is where consultative selling has an impact, and now we will explain why.
How does consultative selling influence Lifetime Value ?
Consultative selling is a form of selling in which the sales representative also acts as a consultant to the customer, asking the necessary questions to help them discover the best solution for their current situation and determine whether your company can offer it.
On the other hand, if after learning about the prospect's particular situation you determine that you cannot help him, you will also have an assertive attitude and let him know, even if you are aware that you have just lost a sale.
But that's the point: a consultative salesperson doesn't want to sell just for the sake of it, they want to sell only when they know the product or service is right for the prospect.
The Lifetime Value (LTV) is a metric that measures the profits that a customer can generate for a company throughout the business relationship.
This KPI is one of the most important in sales.
Acquiring new customers will always represent a greater investment of time and resources than retaining current customers.
However, many companies do not take this into account and put all their efforts into acquiring new customers, leaving aside what they could do to increase the retention of existing ones.
Measuring the profit russia telegram data margin (even if only predictively) that each client represents over the average duration of the business relationship is the first step in finding ways to increase it.
The quality of the product or service.
The accompanying service delivery from both vendors and the customer service/support team.
This is where consultative selling has an impact, and now we will explain why.
How does consultative selling influence Lifetime Value ?
Consultative selling is a form of selling in which the sales representative also acts as a consultant to the customer, asking the necessary questions to help them discover the best solution for their current situation and determine whether your company can offer it.
On the other hand, if after learning about the prospect's particular situation you determine that you cannot help him, you will also have an assertive attitude and let him know, even if you are aware that you have just lost a sale.
But that's the point: a consultative salesperson doesn't want to sell just for the sake of it, they want to sell only when they know the product or service is right for the prospect.