Customer lifetime value is a metric or index that quantifies the amount of money a customer is expected to spend while doing business with an organization and has become very useful for defining success.
In this article, I’ll discuss CLV and what it means for me at Microsoft, how you can calculate CLV and use your results to boost revenue, and most importantly, the significance of outcomes and outcome success in driving CLV.
My name is Ayman Husain, I live in Houston, in the great state of Texas, in the United States of America.
My employer is Microsoft; I joined Microsoft in 2017 and have been with them since.
My role at Microsoft is concerned with customer success. I work for the intelligent cloud division, which encompasses mostly Azure, Microsoft 365, and Dynamics 365. These are cloud platforms.
The success I have at Microsoft is to grow Azure, the use of it and the adoption of it. My success is based on how much Azure is being used by my customers. Microsoft's success is measured by the growth of the Azure platform, and also the customer lifetime value.
That is something I'll be talking about in this article, and I hope you take away some of the ideas and points of view I have regarding customer lifetime value.
My background is strategy and management consulting and some of these have come to me over years of consulting and strategizing with many customers both in IT and in business.
What am I going to be talking about today? Driving customer lifetime value by focusing on outcome and success. Let's break it down.
- The customer is the buyer of this product's services, that's the C of the CLV.
- Lifetime is the duration of time when there'll be doing the buying, and
- Value is a measure of the worth.
Customer lifetime value has to encompass a way for us to measure the customer, duration of time, and the value that comes to us from.
I'll be writing on this topic and hope you gather some ideas that will help you understand my point of view and we can share this in a way to have greater customer success.