CLTV represents the amount of money a customer is expected to spend in your business during their lifetime and can be used to optimize your marketing efforts. It is one of the most important metrics to keep track of the overall performance of the business and ability to retain customers.
CLTV could be very useful for :
Decisions about investing in a current customer, i.e. spending on retaining, serving, & cross-selling
Decisions about ‘firing’ a current customer
Decisions about how much to spend on acquiring a new customer
Estimating how much a customer base is worth when valuing a company for purchase
Recording an asset value in the financial accounts.
Its challenging for Industries to account previous transactions plus various behavioral indicators in order to perform predictive analysis and takes. Industry needs to react quickly to customer demands.
Its not easy to Identify the touchpoints where your customer creates value.
Its important to personalize the formula for the business,in order to determine a highly-accurate customer lifetime value.
Many Established Companies Keep Their Data in Different Silos. Data silos are detrimental to calculating CLV. Attempting to extract meaningful insight from these separate streams can be both expensive and inefficient.
CLTV will differ by different customer segments. It’s most likely that one or two segments will have a much higher CLV than others, whether because they spend more per transaction or because they stay with you for longer.
Sparkflows offers the most comprehensive and scalable solutions for CLTV prediction.
Sparkflows provides a various workflows to gather, analyze and process various types of attributes like
Average Basket Metrics
Customer Engagement Cohorts
Sparkflows provides workflows to train Linear Regression models using the features derived from the above Business Attributes.
The insights generated from the Analytical Apps and the Reports can help find the champions, loyal customers, and potential loyalists.
Such insights will empower Marketers and Business Users to organize loyalty programs, advertise limited edition products, provide special discounts, tune recommendations and offer free shipments.
Optimize your marketing spend
Knowing which customers are most valuable to you, you can prioritize your customer acquisition strategies
Reduce churn and drive loyalty
Make better decisions about which customers to invest in when it comes to preventing churn
Design new experiences that grow the business
Maximizing customer acquisition, Maximizing profit
Ability to treat customers differently
Offer free returns, Long-term Company-wide Growth