Such decisions you will make with Tractus
can significantly increase the profitability of your business.
Segmentation to bucket your audience (segment and identify the personas of top customers to serve them better)
Listen to your customers – Collect actionable feedback and analyze it
Data driven growth (predict metrics, etc.)
What Is CLV?
Customer Lifetime Value (CLV) represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.
This is an important figure to know because it helps you make decisions about how much money to invest in acquiring new customers and retaining existing ones. In the big picture, CLV is a gauge of the profit associated with a particular customer relationship, which should guide how much you are willing to invest to maintain that relationship. That is, if you estimate one customer’s CLV to be $500, you wouldn’t spend more than that to try and keep the relationship. It just wouldn’t be profitable for you.
The Value of Knowing
Calculating the CLV for different customers helps in a number of ways, mainly regarding business decision-making. Knowing your CLV you can determine, among other things
Who your most profitable types of clients are
Which products have the highest profitability
What kinds of products customers with the highest CLV want
How much you can spend to acquire a similar customer and still have a profitable relationship
Better customer relationships, more efficient ads, and more reliable measurements are all benefits of using Customer Lifetime Value (CLV).