Importance of Customer Lifetime Value (CLV) Isn’t Just a Metric: It’s a Mindset
- Renato Silvestre
- Jul 23
- 2 min read
Updated: Sep 4
I recently had the pleasure of reconnecting with Susan, a longtime colleague and insights partner from an earlier chapter in my career. Over time, she became a valued client, a trusted referrer, and, most importantly, a friend, especially during our work with her team at Opendoor.
Our paths crossed again in an unexpected but meaningful way. Our sons were competing at the national MLS Next Fest soccer tournament in California. Sitting in the restaurant with their team gathered around us, I had a moment of clarity. STRATEGENCE is exactly where I’m meant to be.
Relational vs. transactional
Fostering long-term client relationships has always been one of the most fulfilling parts of my career. Early on, I worked in a large organization where everything was measured by metrics and acronyms:
CAC: Customer Acquisition Cost
ARPU: Average Revenue Per User
CSAT: Customer Satisfaction
NPS: Net Promoter Score
CRR: Customer Retention Rate
CHURN: Customer Churn Rate
These metrics are useful, but I quickly realized something was missing: the human connection. That experience didn’t last long. I’ve always believed relationships should come first. Not just sales. Not just KPIs. But trust, empathy, and shared growth.
Importance of customer lifetime value and a sample size of one
Yes, it's a small base, but Susan’s journey reflects a broader truth: satisfied clients tend to come back. They often bring others with them.
According to Bain & Company, “promoters” (customers who rate you 9 or 10 on a Net Promoter Score survey) account for more than 80% of referrals in most businesses. Meanwhile, “detractors” are behind the vast majority of negative word-of-mouth.
Promoters also have a customer lifetime value that is 600% to 1,400% higher than detractors, thus highlighting the importance of customer lifetime value. This is not just a metric; it is a compelling business case for building genuine relationships.
Want to learn more about best practices in customer satisfaction survey, including the drivers of perceptions and behaviors? Book a complimentary strategy session.
Why Us
This is exactly why we do what we do at STRATEGENCE.
If you're tired of being treated like just another number in a sales funnel, you're not alone. At STRATEGENCE, we focus on maximizing customer lifetime value through meaningful customer relationships, strategic market insights, and innovation that supports long-term growth.
We believe the strongest partnerships are built on trust, not just transactions. Ready to explore how we can grow together?
Let’s start a conversation. Email me at rsilvestre@strategence-us.com. I’d love to connect.
Love this, Renato. I totally agree! You and the entire team at Strategence really care about us at Opendoor! We love having the opportunity to get your feedback on our business and help with interpreting our results. As a result, the Strategence team always delivers high value for us. Jobs might come and go, but relationships endure. Hopefully, we'll have th
Renato, I couldn't agree more with your perspective on the importance of long-term relationships and the human connection in business. You were my boss long ago in Tokyo, and even then, you worked so hard to ensure everyone on your team was happy. Thank you for sharing this and reminding us that genuine connections truly make a difference!