Know Your Customers’ Lifetime Value (CLV)
Customers can be understood as individuals rather than as part of a larger group through the use of CLV.
Knowledge of customer lifetime value (CLV) has become an integral part of the marketer’s toolbox. CLV allows for more accurate segmentation to create more effective programs. It also helps marketers focus on those customers who offer the most long-term value.
Customers who visit twice a week for coffee are fundamentally different from those who visit once a fortnight for a full breakfast, for example.
Customer lifetime value (CLV) can tell a company how much a single customer is worth to them.
Knowing your customers’ lifetime value (LTV) provides you with a clear picture of where your marketing resources are best spent.Identify Your Most Valuable Customers: Using CLV, you may see which of your customers are the most valuable, and which are the least.
As a result, you’ll be able to recognize and reward those who contribute the most to the company’s success
When running a program that encourages people to visit more frequently, it’s important to consider the long-term effects of that change.