Based on the answer given, three different profiles of the respondents are now. Create: 0-6 score: detractors (dissatisfy, disloyal) 7-8 score: passives (quite satisfice. But not a ‘fan’) 9-10 score: promoters (enthusiastic about product or organization). A doll with a broken heart on the predicting in Google table. Photo by burak kostak from Pexels NPS has its shortcomings , but it is an easy-to-implement method to keep a finger on the pulse of your customers’ satisfaction. And therefore a valuable addition to the dashboard of every subscription provider.

Step-by-step plan

Customer lifetime value (LTV) Books have been written about the concept of customer lifetime value (CLTV or LTV) and the way in which this can ideally be measure. In essence, LTV stands for the financial value that the customer represents, looking at the  term of his contract. In its most basic form, the LTV of an individual customer can be capture Lithuania Phone Number in the following formula: LTV = ARPU x customer lifetime A simple example: if a subscriber earns $15 a month and stays for 24 months, then his LTV can be calculate as follows: 15 x 24 = $360. It is a choice whether you predicting in Google also include the costs of the customer when calculating LTV .

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What are predictive audiences?

You can think of the costs to acquire a customer ( customer acquisition cost ) or to service the customer ( cost to serve ). The advantage of this is that you get a more accurate picture of a customer’s ‘net’ contribution. However, the complexity of a net LTV calculation can create a barrier. There is of course a relationship between (volume) churn and customer lifetime. The higher the churn percentage, the shorter the lifetime of a customer (group). You can easily derive the average lifetime from the churn percentage with the following formula: Lifetime = 1 / churn rate So let’s say your annual churn rate is 14.5%.