Customer Lifetime Value

Do you want to better understand your customers? Predict the value that customers bring to your company by incorporating Customer Lifetime Value (CLV). You strive to map the customer journey as accurately as possible to deliver the best possible experience. And if you want long-term assurance of success, include Customer Lifetime Value in your strategy and discover the value and potential return of a customer.

If this marketing term makes your head spin, Addmark is here to help and will clarify what lifetime value means.

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Customer Lifetime Value

Customer Lifetime Value refers to the value a customer represents for your company. It not only covers past purchases, but also potential future transactions. Calculating CLV helps you manage marketing processes more effectively and gain better control over your operational costs. By determining Customer Lifetime Value, you establish how much revenue a customer generates over the entire business relationship.

The aim of CLV is to foster long-lasting relationships through optimal customer care. It is more cost-effective to retain existing customers than to acquire new ones.

Customer Lifetime Value and Return on Investment (ROI) go hand in hand. CLV is the extended version of ROI. By calculating the value of a customer relationship, you gain illuminating insights. This helps manage marketing processes related to customer acquisition and retention. Retaining existing customers matters—but it must pay off in the end.

If a company spends more than what a customer contributes over time, that is unsustainable for your business.

What are the advantages of Customer Lifetime Value?

By focusing on CLV, you benefit from several advantages. Addmark lists them for you:

You learn more about your customers and their needs, enabling you to present more relevant offers.
You gain more control over your marketing budget.
You can market more precisely to individual customers.
You build a valuable and profitable customer base.
You maintain customer relationships more effectively.

Would you like to optimize your current customer base and keep your customers satisfied? Discover the value of your relationships and learn how to handle it smartly.