However, you can also have higher customer turnover.

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LTV represents the level of revenue each customer generates for the business over the duration of the business relationship, and CAC refers to the total expense involved in attracting a new lead until it becomes a customer.

If your existing customer relationships become longer lasting and they end up representing a higher level of revenue for your business, this means that your total Customer Acquisition Cost will have decreased. This means that you will have to invest fewer resources in acquiring new customers.

If you want to know if your company's romania telegram data Lifetime Value is greater than the Customer Acquisition Cost, it's simple: you must subtract the CAC from the LTV, and if it gives a positive number, it means that the profits generated by each customer while the business relationship lasts is greater than what it cost you to acquire it.

In traditional sales, sales closing may occur more quickly and new customers may be acquired in less time.


On the other hand, applying consultative selling may represent a longer period of time in terms of closing sales. But, since these are sales in which progress was made because the offer really solves the prospect's problem, there will be a much higher level of retention and loyalty.

Acquiring new customers and not retaining current ones can be costly

An Invesp article points out that "it is up to 5 times more expensive to acquire a new customer than to retain an existing one."

That is why it makes so much sense to have a sales team trained in consultative selling so that they can increase the level of customer satisfaction and thus the relationship lasts longer.

All this translates into a higher Lifetime Value, more satisfied customers and a lower Cost per Customer Acquisition.

We have created a complete guide on consultative selling in which you can learn everything related to it, so that you can apply it in your business and thus improve your sales results.