In a year when it’s harder for companies to get funding, get launched and acquire customers, people will turn a hard eye to the bottom line—how can you help your company stand apart?
Measuring and tracking the lifetime value of a customer is the not-so secret weapon which some of the fastest growing tech companies live and die by. The reason is simple: once you know the lifetime value of a customer, you know how much you can spend to acquire more of them while remaining profitable.
Mixpanel’s new Revenue Analytics lets companies measure lifetime value.
Companies can now use Mixpanel to analyze their revenue data just like they do their product usage data. They look at their customers in aggregate and quickly gain insight into the value of specific subsets of their customers based on data they already track, such as age, gender, geography or account creation date.
Most companies have a manual process in place that only lets them do the most basic lifetime value calculations. To do deeper segmentation or measure their strongest acquisition channels, they have to go to their engineering team, do a custom SQL query of their database, and wait for an answer.
Mixpanel is designed to encourage exploration of data. We already give our customers the ability to measure how their customers use their apps and to communicate with them in a more relevant, measurable way. Now, with Revenue Analytics, they can easily use Mixpanel to instantly assess the performance of their business based on the ultimate key metric–revenue–and instantly measure who their most valuable customers are.
The insights they uncover are instantly actionable. When a company knows who their most valuable customers are, they know who to focus on and when tied with product usage data they’ll know where to focus their development cycles to keep their most valuable customers. They can learn that customer who use a specific feature of their product generate twice as much revenue as customers who don’t. They will be able to see if 18-24 year old men in San Francisco or 18-24 year old women in New York spend more money in their app. They will be able to measure which acquisition channel delivers the most valuable customers. They will be able to measure if their customers spend more or less money over time.
For more details visit our docs page.
Do you know the lifetime value of your customers? Is a customer you acquire through Google or Facebook more valuable to your business? Find out. Right now.