Customer Long Term Value Whitepaper

Description

Customer Lifetime Value Analytics

Companies can benefit by identifying there most and least profitable customers. The calculation of Customer Lifetime Value (CLV) is a way to accomplish that through estimating the total net profit that a customer is likely to generate over the lifetime of their relationship. CLV informs decisions such as the amount that can be spent to acquire and retain customers.

Challenges of Customer Lifetime Value Analytics

Making profitable use of CLV is not always easy. First, a customer CLV plan is needed – determining which CLV approaches should be pursued. Next, data must be gathered and programs developed to produce CLV. In addition, CLV must be monitored through KPIs and dashboards to guide follow up actions Finally, CLV must be kept current to continue to provide value.

Customer Lifetime Value Solutions

InfoGoal can provide solutions to these challenges and more:

• CLV Strategy and Management – Recommend approaches to increase LTV and manage a repository of customer LTV models.
• CLV Calculation – Calculate LTV using factors such as: purchase history, xxx
• CLV Dashboard – Present an informative dashboard showing LTV trends with breakdowns by xxx

Tell us about your Customer Lifetime Value Project

Consider these questions:

1.What business are you in?

2.Who are your target customers?

3.How do you want to use CLV?

4.Describe your current data sources.

5.What methods do you use to determine CLV?

Customer Lifetime Value Project Framework

Your project will be implemented using a proven and effective customer analytics framework. This framework builds on the steps of CRISP-DM (Cross Industry Standard Process-Data Mining) combined with the Infogoal Customer Model and a library of accelerators which produce faster and more effective results.