31- How to design for valuable customers?

07/09/19 • 9 min

Imagine you are running a hotel. Who would you rather have as a customer? High value but one-time visitor or an average customer who will keep coming back for many years? It depends, right?

Lifetime Value (LTV) is a concept that can help us determine the business value of our customers and with that understand:

who is an ideal customer,
how much they are worth to a business,
and how much we can spend on acquiring a customer.

In this mini d.MBA episode we cover the definition of lifetime value and its relevance for designers.

Imagine you are running a hotel. Who would you rather have as a customer? High value but one-time visitor or an average customer who will keep coming back for many years? It depends, right?

Lifetime Value (LTV) is a concept that can help us determine the business value of our customers and with that understand:

who is an ideal customer,
how much they are worth to a business,
and how much we can spend on acquiring a customer.

In this mini d.MBA episode we cover the definition of lifetime value and its relevance for designers.

Previous Episode

30- Business costs are a design decision

When you open a yoga studio, will you hire yoga instructor full-time or will you find a contractor? Will you sign a one year lease for your studio that you can equip the way you want or will you try to rent a pop-up store that gives you more flexibility?

These are all design decisions that entrepreneurs and designers should think about.

In this mini MBA episode, we spoke about:

the difference between fixed and variable costs
and calculating a break-even point.

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Next Episode

32- John Oswald @Method - Business Design 101

John Oswald is a business design pioneer. He was the first business designer at fjord where he defined its role and built the team. He is currently a managing director at a strategic design consultancy Method London. With John, we discussed: