Think of the data you have on your customers as having value. It does, by the fact that the more you know your clients, the better you can serve them. This “unlocked potential revenue” of all your current customers can be quantified as your whole customer’s lifetime value (CLV) added together.
This number is known by finance people as Customer Equity, but it’s much more than a mathematical formula. The value that VCs and public markets have put on assets such as loyalty programs and subscription lists is often greater than the value of a company’s capital assets!
While it might sound like it has to do with finance, this is all highly related to marketing. This is because each tactical decision gets vetted by whether it will optimize CLV; it becomes your company’s North Star.
Allison Hartsoe has strategize d the digital customer analytics for dozens of Fortune 500 customers throughout her career. She now leads an analytics consultancy in Portland OR, Ambition Data, and published the book, “The Age of Customer Equity”, in 2021. She has been published in Forbes.com, MIT Technology Review, and Fast Company and somewhere in between all this writing, she found time to cycle across the USA.