THE VALUE & PRICING BLOG

The latest stories, blog articles, and pricing news from the Ibbaka team

Gregory Ronczewski Gregory Ronczewski

Core Concepts: Customer Lifetime Value (LTV or CLV)

Lifetime Value of a Customer (LTV / CLV) is the total worth of a customer's business over the whole period of their relationship. It costs less to keep existing customers than to acquire new ones, so increasing the value of existing customers is a great way to propel growth.

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Steven Forth Steven Forth

Customer segmentation for price increases

Are you planning a price increase for 2023? Before you execute on a price increase you need to segment your customers. The segmentation is based on Value to Customer (V2C) and a measure of the value of the customer to the company like ARR or LTV (life time value of the customer). You want to move customers into the segment where they are getting a lot of value and providing a lot of value.

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Price and Customer Value Management for Customer Success

One of the most crucial roles in a subscription business is customer success. Communication of the value offer to the customer and ensuring that the value promised to the client is fulfilled are the responsibilities of customer success. Healthy renewal rates, increased Customer Lifetime Value (LTV), and more success with up-sell and cross-sell opportunities are all ensured by consistent value communication and measurement of value supplied to the customer.

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