Some business models will segment the worth of their customers into categories that will often give different levels of service to the more “higher worth” customers. The metric most often used for that is called Customer Lifetime Value (CLV). CLV is simply a balance sheet look at the total cost spent versus the total revenue earned over a customer’s projected tenure or “life.”
Tag: customer lifetime value
Last week, I was fortunate enough to attend the Insurance Networking News Analytics Symposium. This great event had several engaging speakers. As analytics becomes more prevalent within insurance, it was refreshing to see that many organizations discuss their successes and share best practices in this essential aspect of the business.
Are you always looking for that inside perspective? Most of us are! As we all know, customers are the primary – perhaps exclusive – source of cash flow for many organizations. Knowing which ones are most profitable is critical to maximizing future economic value. To help today's marketing and business leaders learn
Are we oversimplifying customer segmentation and treatment strategies? SAS Marketing Director Jonathan Hornby thinks so. He also believes customer lifetime value should include an understanding of sentiment, influence and the value of collaboration with your customers. In fact, if you're not factoring these items into your customer segmentations, you're probably