Quick Guide to Understanding Customer Lifetime Value

This report is a quick guide to customer lifetime value (CLV), defining its meaning and laying out the business benefits of tracking it. It covers different approaches to measurement and the importance of customer loyalty in the context of CLV.

By Econsultancy January 2022 17:14

This report is an abridged version of Econsultancy’s Understanding Customer Lifetime Value Best Practice Guide. It provides marketers with an overview of the long-term business benefits of tracking CLV and looks at ways to increase it. The guide covers:

Performance: What are the key benefits of tracking CLV and how can this help to improve business performance?
Measurement: What is the formula for calculating CLV and what other models exist to help businesses track its impact?
Retention: How can CLV help marketers recognise patterns in consumer behaviour and spot churn before it happens?
Loyalty: Why is an emotional connection with the customer so important and how has the perception of customer loyalty changed over time?
Actions: What can businesses do to specifically target retention, value and frequency – three of the key factors influencing CLV?

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