Dan Grant: Hey guys, it's Dan from Fatrank here. Today we're going to be going through our blog post "Grabbing Customer Lifetime Value is Essential."

What a lot of people do when they sell a product or a service online is they completely forget about that customer as soon as the product is sold. That might be well and good in terms of getting that job in or selling that product, however once that's done, you could be making a lot more money and making the most out of that customer's lifetime value. 

Cutting that off and ending all ties when the product or service is sold basically means that customer's lifetime value is very, very little. They aren’t going to have much lifespan in terms of purchasing products or services with you again. You might get lucky and the odd customer comes back for repeat business, but you're really not making the most out of that customer's initial purchase.

This video goes through the blog post about the importance of customer lifetime value. We talk about upsells, downsells, and cross-sells, and why you should start using them. These are selling techniques that help improve your likelihood of selling more products or different products to the customer.

An upsell is anything that increases your customer’s spending on your products or services. For example, if someone buys a GoPro camera, they might also want a case, a memory card, or a strap. Selling just the GoPro would be detrimental to your sale—you’re better off trying to sell more items they may want during the purchase. This applies to so many business models and probably yours as well. Even small upsells like tyre shine at a car wash add up massively over time.

Downsells are used when a customer decides to pull out of buying a product, and you're able to offer them an alternative that still meets their requirements at a cheaper price. For example, if someone wants a powerful Mercedes AMG but can’t afford it, you could offer them the AMG Line version. 

Without that option, they might just leave and go elsewhere, and you miss the sale entirely. The same applies in e-commerce, like offering a similar TV at a lower price or bundling in speakers for a better deal.

A cross-sell is about connecting various niches related to the original purchase. For example, if someone buys a house, you can cross-sell home insurance, gas and electric suppliers, TV and broadband, life insurance, and moving equipment. Holiday companies do this too—if someone buys flights to Barcelona, you can offer hotel deals or attraction packages. All of this contributes to boosting customer lifetime value.

The aim is to ensure your customer has a strong lifetime value with your company and comes back to spend more money on various things over time. The blog goes into more detail about calculating lifetime value, bonus tips, and common mistakes companies make, such as lacking skills or overlooking opportunities.

But the main point is understanding what customer lifetime value is and why it's so essential for your business.

Thanks a lot for watching, guys. Hope you enjoyed the video, and I will see you guys later.