Lifetime Value of Your Customers
Lifetime value is much bigger than current sales. It includes your current software sales, plus the sale of updates, plus the income from customers upgrading from the Standard version to the Professional version of your application. Lifetime value includes cross-selling your other software to your existing customers, and selling them the applications that you offer on an affiliate basis. Lifetime value means that these people are inclined to appreciate whatever new products or services you will offer in the future.
Most importantly, lifetime value includes the revenue that comes from current customers’ testimonials and referrals.
You can’t succeed in the software development industry with a “one and done” approach to sales. Your customers are your most valuable assets. Treat them right, and they’ll continue to support your software business.
– by Al Harberg, the Software Marketing Blog guy