Keeping customers and growing them
It is much more costly to get customers than to keep them. However, keeping customers can increase revenue multiple times over. For example, if you keep your customers for 20 months, compared to if you spent the extra time to keep your customer for 100 months. You have just increased your revenue stream 5 times and that is very significant. 

Next you need to grow your customers, and this includes up-selling etc. This way your customer that you have kept will grow and spend more money on your business while being satisfied. 

Finally what is most important is that you find your Lifetime Value (LTV). Your LTV is how much money you can get from your customer in a lifetime. This lifetime does not refer to your lifetime, but the estimated time you believe your customer will stay with your business. Your customer acquisition cost (CAC) is the amount of money it takes to acquire and keep your customers. You want your LTV to be larger than your CAC. That is how your business stays in business and the larger the LTV is to your CAC the more interested investors will be.

Leave a Reply.