Marketing measures can be very expensive. In order to increase the efficiency and benefits of marketing, decisions should be well-considered and based on a solid foundation. This requires an indicator that not only looks at short-term revenues, but also at the full breadth and duration of the business relationship: the Customer Lifetime Value (CLV). Investments that only become apparent after a certain period of time thus receive the attention they deserve. Just think of customer loyalty, which leads to more existing customers and ultimately provides the bulk of revenue for many companies.
The Solution: Customer Lifetime Value
The CLV represents such a holistic view of customer value by taking past and future revenues and expenses into account.
The advantage of this key figure is that it specifies the proportion of the marketing budget that is due to certain customers or customer segments. In this way, marketing activities can be designed more efficiently and profitable, long-term business relationships can be strengthened.
You want to work with Customer Lifetime Value, but don't know exactly how yet? Our CLV Toolkit shows you ...
… Which data you need to calculate the CLV.
... where you get the required data from.
… How to calculate the CLV.
… How to increase the CLV.