Customer Lifetime Value

Understanding the customer life cycle and customer lifetime value offers benefits in budgeting, segmentation and prioritization. CLV ultimately helps you in forecasting and improving the overall health of your company. Key benefits include:

• Customer Acquisition and Retention: CLV gives you a better understanding of what you can spend to acquire customers and profitably retain them.
• Targeted Marketing: One of the major uses of CLV is customer segmentation, which starts with the understanding that not all customers are equally important. CLV-based segmentation model allows the companies to predict the most profitable group of customers, understand those customers’ common characteristics, and focus more on them rather than on less profitable customers.