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Business Goal

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 :

  1.  Decisions about investing in a current customer, i.e. spending on retaining, serving, & cross-selling

  2.  Decisions about ‘firing’ a current customer

  3.  Decisions about how much to spend on acquiring a new customer

  4.  Estimating how much a customer base is worth when valuing a company for purchase

  5.  Recording an asset value in the financial accounts

Challenges

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

Solution

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

Frequency

Recency

Average Basket Metrics

Income

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

Business Impact

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

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