Customer Lifetime Value

All our efforts are directed at helping clients better align themselves to their customers so they can execute most profitable programs and build loyal base that keeps coming back year after year. 

Customer Lifetime Value (CLV) is one metric that can summarize all the efforts and outcomes in one number.  It can also direct companies in their budget allocation towards new and old customers.  Customer Lifetime Value is similar to the Net Present Value in finance and accounts for all the possible purchases a customer will make in the future.

For example someone spending very little with you today who just got their first job may have a high LTV as they will later get married and increase their purchases.  Allocating a proper amount of budget towards a relationship with them today will ensure they stay with you until the time when their spending increases.  This is how LTV approach is different from Current Value Approach where a company may cut the relationship with a particular customer based on last year's spend.