Customer Lifetime Value

Customer Lifetime Value

Customer lifetime value in mobile marketing terms is customer lifetime value (CLV) or lifetime customer value (LCV) lifetime value (LTV), you need present value of cash flow to make accurate calculations of customer lifetime value

Customer lifetime value is the specific calculation depends on the nature of the customer relationship. Customer relationships are often divided into two categories.

For example: in contractual or retention situations, customers who do not renew are considered “lost for good”. Magazine subscriptions and car insurance are examples of customer retention situations.

The other category is referred to as customer migrations situations. In customer migration situations, a customer which does not buy (in a given period) is still considered a customer because she may very well buy at some point in the future.

Customer Lifetime Value

Customer Lifetime Value - Utilising Gift Vouchers, Coupons, Free Gifts, etc to Boost CLV

In customer retention situations, your company knows when the relationship is over. One of the problems for any business in customer migration situations is the business may not know when the relationship is over (as far as the customer is concerned)

Calculation in customer retention cases. CLV (customer lifetime value) calculation process consists of four steps:

  1. Calculating of remaining customer lifetime in years
  2. Calculating of future revenues year-by-year, based on estimation about future products purchased and price paid
  3. Estimation of costs for delivering those products
  4. Calculating of the net present value of these future amounts

Do you know how to calculate your customer lifetime value! If you do, how much would you invest to get one, two, three, and even ten new customers a week?

Want to know how to increase the customer lifetime value of your customers in one day? Simply enter your information below and click submit button, we’ll get back to you within 24 to 48 hours.

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Customer Lifetime Value

 

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