Customer Lifetime Value (CLV) for QSR Guests
CLV tells you how much profit a customer is worth to your business over their entire relationship with you. It's a vital metric for making decisions about marketing spend and retention efforts.
Know exactly how much you can afford to spend to acquire a new customer and still be profitable.
Justify investments in loyalty programs by understanding the long-term value of a returning guest.
Segment your audience to find high-value regulars and tailor your offers to keep them loyal.
Results
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Understanding Customer Lifetime Value (CLV)
CLV is a prediction of the net profit attributed to the entire future relationship with a customer. It's a powerful metric that shifts focus from single transactions to the long-term value of retaining customers.
Simple CLV Formula: (Average Purchase Value × Purchase Frequency × Customer Lifetime) × Profit Margin
By knowing your CLV, you can make smarter investments in marketing and customer service, ensuring the cost to acquire a customer is less than the value they bring to your business.
Frequently Asked Questions
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