C- Suite what is your Business Lifetime Value?
One of the biggest ways that companies can increase the propensity for growing over time and have lasting sustainability is to produce products and services that generate increasing lifetime customer value and relationships that build long-term value.
Most businesses understand what each customer will bring to them in terms of profits and how long they can expect to participate in a relationship. They know how the impressions they make on social media impacts an organization and what stories they want to tell. But do we also understand what we bring reciprocally to a customer, clients and employees over a lifetime?
With companies making headlines for valuing financial decisions over humans lives, there has to be an area where we can ask ourselves the very questions necessary to create a higher level of value beyond our profits, product and services and brand image and raise the value to shareholders and stakeholders alike.
Would it make sense that organizations begin to not only assess this area a bit more carefully, and beyond the scope of ethics? But do more to ensure that this is done ? Still, it seems that many companies are in the dark in understanding their own total offer.
One way to ensure that the Business Lifetime Value to customers/consumers and employees is at the objective level is to build it into their framework for products, services, and processes. With this design, we can move proactively to avoid potential pitfalls down the road, harms to our businesses, customers and consumers and future lawsuits. In doing so we can raise our value to shareholders and stakeholders rather than skirt issues of problematic products, or processes later. Then if we can take on another approach other than simply the proclivity of assigning customers lifetime value or better yet, a life value, then indeed there will be better trust with our employees, products, services, brands and such.
Interestingly out of that way of doing business organizations position themselves to create a better product, a better environment, and the new that transforms to the next. Not only will this transformation bring on improvements that are warranted, a lot of the time innovation will be birthed in this process, and a better product, service or experience is automatically created for the customer.
Dollars used in this way outperforms whatever finances we think can be saved by taking a chance of getting paid out proverbially over lawsuits.
Organizations get stronger and even more inept in their abilities to drive improvements. Speed and knowledge increase together, increasing the Business Lifetime Value in itself. An increasing Business Lifetime Value thus allows us to measure in total the value we produce in our organizations that are in line with the big picture and the people and purpose that the products and services are made for in first place. The people we serve deserve to understand what it is we are truly totally offering. They deserve that, they deserve for us to make that effort.
Engineering those points in the processes and systems is a strategic move. When customers are offering up their dollars, the value for them can mean way more than a decision between a competitor or substitute. If we continuously measure how we impact our customers and consumers lives when they engage with what we are offering, then the return value will be realized to its greatest potential and our Business Lifetime Values will increase, thus increasing our ability to attract our highest Customer Lifetime Values and continuously increasing our ability to reap the benefits to all shareholders and stakeholders as we move further along into the continuum of the future.