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Curious what industries have the highest customer LTV and which startups are doing a great at maximizing customer value.

  • MF

    Matt Fulton

    about 2 years ago #

    Two thoughts, one general and one specific:

    Recruiting/hiring: the fees per-placement are huge (usually 10-20% of first year salary). When placing $150k/year developers, this adds up. Startups like Hired probably qualify under the "maximizing customer value" umbrella.

    General: Enterprise SaaS. Cost is not much of a factor in this space — I suspect this is because, unlike consumers or smaller businesses, Enterprise has more money, and psychologically, it's just not the decision-maker's money.

  • JA

    Justin Adelson

    about 2 years ago #

    In my experience, it is usually subscription based and/or digital company that provides a service or product that the average company or person(s) cannot live without after using it for a while. Some people could make the argument that the luxury goods and automobile industries provide the highest LTV since getting a repeat customer could mean $10,000s or $100,000s of revenue but it is very hard to complete a sale unless the person is committed to that brand (i.e. Chanel, BMW, etc.). Subscription based services like Netflix, Gamefly, or Hello Fresh might have low LTVs compared to high-priced items but their affordable monthly fees and broad target market makes their LTVs the most attractive due to scale and quantity.

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