Customer lifetime value
Make smarter marketing decisions that focus on maximizing customer value
Retailers who know the worth of each of their customers are in a formidable position. This knowledge enables marketing, product and customer service teams to allocate their budgets and resources in the customers with the highest potential and achieve faster growth.
CLV is an important metric – it tells you how much repeat business you will get from an individual, and helps you budget better since you know what returns you can expect from that investment.
Despite this, majority of retailers do not measure lifetime value – owing to siloed customer data and inability to integrate. Fragmented customer data cannot be an excuse anymore - you’re missing a massive opportunity if you have not unified customer data. By unifying customer data, you can understand cross-channel behavior and move from channel-centric to customer-centric marketing.
Knowing customer lifetime value can help retailers:
- Craft a customer acquisition plan that delivers high-value customers
- Effectively nurture and serve customers driving the highest revenue
- Proactively arrest churn of customers in the higher strata
- Replicate actions and strategies that yield high value customers
