Customer lifetime value (LTV or CLV) is a critical metric for many companies in the subscription economy. But before your LTV comes V2C (Value to Customer). Understanding how you will create value to your customers over time should come before estimates of LTV and LTV and V2C need to be kept aligned.
Ibbaka is a value-based pricing company. To do value-based pricing, one has to ask who the value is being created for. This impacts everything from product and services deign, to pricing to communication and sales strategy. A holistic view of value and stakeholders can transform how one thinks about pricing.
We see a lot of market segmentations in our work. Often these segmentations are the weakest part of the marketing plan. Many segmentations are limited to firmographic data and in some cases are simply a list of industry verticals. They are meant to find a market that fits the offer. Instead, we should segment based on emotional and economic value creation to build an offer that fits a market.