Customer lifetime value (CLV) is a powerful metric, helping businesses to identify their most valuable customers and build a focused strategy around them. Increasing privacy regulations and the rising costs of customer acquisition have put further emphasis on the need for businesses to retain and build loyalty among their existing customer bases.
CLV acts as a lens, bringing the right customers into focus and guiding companies to invest in long-term results over short-term gains, driving future growth.
The vital insights CLV provides enable companies to allocate resources effectively, fine-tune their targeting, finesse their product offerings and optimise their CX and customer service.
This best practice report is for companies looking to understand CLV and build it into their business and marketing strategies as a guiding, unifying principle. It covers:
- The value of CLV: Using customer lifetime value as an integral metric of strategic success can provide a North Star that guides everyone in the company towards long-term success. How can senior leaders ensure the measure is embedded across an organisation?
- Leveraging data: Quality data is a must for businesses looking to understand and segment their customers. What can companies do to establish a solid data foundation and plug any data gaps that might exist?
- Calculating CLV: It is important for companies to understand the different methods for calculating CLV in order to select the approach that works best for the business. What are the different formulas and variables that can be applied?
- Strategy and tactics: Using CLV as a measure will enable companies to identify a wealth of opportunities to drive value. From improving the customer experience to reducing churn, what are the key strategies and tactics companies can deploy?
- The business case: A focus on customer lifetime value can bring benefits to businesses and customers alike. How can marketers demonstrate the case for CLV and secure support for scaling its use?