Customer Lifetime Value (CLV)

Value: Build relationships with your customers and leverage them to grow revenue

Customer Lifetime Value (CLV) is a prediction of the net value attributed to the future relationship with a customer.  Leveraging the CLV concept, you can derive benefits in budgeting, segmentation and prioritization so as to effectively manage customer acquisition or customer retention. Customer Lifetime Value ultimately helps you in forecasting and improving the overall health of your company.

  • Leverage CLV in calculating the payback from ad spends and help with effective marketing mix modeling.
  • Understanding what you may spend for customer acquisition and customer retention, profitably.
  • Predict the most profitable group of customers, understand those customers’ common characteristics, and focus more on them rather than on less profitable customers.
  • Establish how one could offer products and services tailored for one’s best customers?
  • Improve sales effectiveness by highlighting the types of customers sales reps should spend the most time with.
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