Predicting Customer Life Time Value


Customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prediction of all the value a business will derive from their entire relationship with a customer. Customer lifetime value can also be defined as the monetary value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship.

Customer Lifetime Value is the single most important metric for understanding your customers. CLV helps you make important business decisions about sales, marketing, product development, and customer support. Additionally, CLV demonstrates the significance of repeat business and can help you shift your priorities accordingly. While acquiring new customers is nice, getting current customers to purchase more from you is often more important; plus, these customers tend to require lower costs and usually produce higher customer satisfaction ratings.


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Chief Innovation Officer

S. Karthikeyan has 19 years of experience in designing, leading and delivering world-class software solutions. His specialties are Software Development & Delivery, Product Ideation, Innovation & Strategy, Enterprise & Solution Consulting, Bootstrapping a product team, Data Science Solutions, and Digital Transformation. He was leading various product solutions at companies like Microsoft India R&D, HCL, and Fifth Gear.

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