Four in ten senior executives in larger companies don’t know the lifetime value of their customers;
That’s according to Marketing Charts who quoted a Forbes and Sitecore study that surveyed 312 senior executives in NA companies.
Not only did 40% of the leadership surveyed not know the financial value of their customers, over half of them don’t plan to. In other words, they don’t care or see the merit in this important number.
This absolutely surprises me. If the leaders of these organizations don’t know, then you can expect that the employees don’t know either. Yet when employees know and have clarity about the lifetime value of the customer, they can make better customer-focused decisions.
Let’s look at a simple example that most of us can understand.