Use Customer Lifetime Value analysis to make the right marketing decisions
Customer Lifetime Value is probably the single most important metric for marketers to get their head around. But depending on how you measure Lifetime Value, it can give different results - and if you have fragmented data or inadequate tools to underpin your analysis, the likelihood is that you may get it wrong.
Customer Lifetime Value (CLV) is an effective way to measure the projected revenue that a customer will generate for you in their lifetime from the point they first enter your marketing database. Calculating CLV from your historical customer data and transactions can have profound effects on how you continue to market to each customer and how much effort you place in retaining some over others.
Ultimately, this analysis enables you to focus on acquiring and retaining the best customers that will generate the most profit.
A marketer’s ability to score, segment and value each potential and existing customer is essential because this forms the basis of intelligent, targeted marketing.
Customer Lifetime Value is vital for marketers to increase profitability, retention and overall business success. CLV also helps to:
Not all customers are created equal – some are more valuable than others. As you acquire more data about an individual, you can determine what sort of customer they will be and precisely how much Customer Lifetime Value they bring.
With the BlueVenn customer analytics and campaign management platform, there is an abundance of analysis and predictive tools to provide CLV for more accurate segmentation, and the marketing automation capabilities to act on that analysis.
BlueVenn's Single Customer View ensures that the Lifetime Value analysis is trustworthy and accurate by bringing together and blending data from all your CRM and transaction systems.
The Single Customer View is fundamental and I don’t know how you can run a business without one. With Big Data taking hold, the SCV is a must have to allow traditional marketing best practice. It supports reporting requirements to measure Big Data initiative results and provides timely information in one place.
Stacie Maxie, Analytics Manager, LV=