Establish budgets to generate a new customer
build projects to increase this value
operate strategically to improve the acquisition cost/revenue ratio while taking into account scalability (it is not certain that many new customers translate into more profits)
Invest in higher value user segments to compensate for lower value user segments
CLV is a very interesting metric because it works in a positive way. It’s not australia cell phone number list just about reducing costs, it’s about extending the time you spend with your most valuable users. Increasing engagement is not just about opportunity, but it’s an opportunity to improve the overall perception of the brand among the consumer. Focusing on customer experience is one of the keys to success for many big brands.
As Avinash Kaushik points out in this in-depth article , “If we can identify the channels, campaigns, media, or propositions that deliver ‘better than average’ customers, we can start to see how much more profitable they are and decide how much more we should spend on them.” Knowing this allows us to have a clear view of the profitability of our user segments and to study precise strategies for them to increase their value over time. Personalization and a multi-channel approach are therefore the lever to use to improve the results of each segment, extending the lifecycle and increasing the overall average value.