CLTV helps you know how well you are resonating with your audience, how happy your customers are with your products or services, and how you can improve upon it. Most importantly, you can drive important business decisions about product development, sales, marketing, and customer support with CLTV.
Categorize your customers into different segments based on their behavior and deliver unique segment-specific marketing campaigns to them.
Get insights from customer data to drive an engagement with personalization to reduce churn.
Send personalized messages to customers with the right message at the right time – increasing awareness and conversions.
Craft loyalty programs to personalize the customer experience while stimulating repeat purchases.
Quality customer service is a vital investment to increase customer retention and customer lifetime value.
Diversify your presence on as many channels as possible to increase the omni-channel reach for your brand.
Re-engage your customers based on their previous buying pattern and win back some of your abandoned shopping carts.
Be receptive to customer feedback and ensure their problems are addressed, increasing customer satisfaction and the number of happy customers.
Look for ideas to promote new services or products to your existing base of customers, based on their buying patterns.
Customer Lifetime Value helps to determine the financial value of your customers. Using the customer insights from CLTV, businesses can make smart decisions that will help:
RFM model uses Recency, Frequency and Monetary values of a customer’s purchasing behaviour to estimate the lifetime value of a customer. It is a well validated and proven method, and easy to implement. RFM helps identify:
● Your most loyal customers
● Customers who are at the verge of churning
● Potential of customers to be more profitable
● Customers who don’t need attention
● Customers you need to retain
● Customers who are most likely to respond to your campaigns
BYTD is ‘Buy Till You Die’, a probability model which gives insights into the non-contractual purchasing behavior of customers. It can help you:
● Tell a story of people who are likely to buy until they die (become inactive as customers)
● Predict how often a visitor will return
● Predict individuals who are likely to become inactive
Suyati has readily available ML models for calculating the customer lifetime value, which can be customized to suit individual business requirements. Since they are ready to deploy, the development and deployment efforts for implementing the same is minimal.