After calculating customer lifetime value at the individual level, what can you do with that information? This lesson provides an overview of cross-functional applications of CLV, from marketing and sales to product and customer service.
Ad platforms allow advertisers to target new users with lookalike audiences. However, the out-of-the-box solution falls short because all of your customers aren’t alike. With customer lifetime value, you can create more effective lookalike audiences for acquisition.
Between acquisition and retention campaigns to content marketing and brand development, it’s difficult to know where to spend your limited marketing dollars. Individual customer lifetime value metrics take the guesswork out of budgeting so you can optimize your spend in real time.
Customer lifetime value is not a static metric. It changes over time—sometimes dramatically—as you observe new data about a customer. By tracking how CLV changes over time, you can determine what product features, retention campaigns, customer service practices, and more impact lifetime value.
Don’t over-optimize your retention strategy; rather, acquire the right customers in the first place. Design a marketing strategy for customers throughout their lifecycle, from acquisition to retention.
You can use customer lifetime value metrics to enrich and inform your product marketing strategy. What if you knew which products high-value customers bought first? Or which products you should offer as a bundle or upsell?
Customer service and customer support teams are making the shift to focus on customer success or even customer experience. Instead of simply reacting to customer problems, customer success teams can use CLV to help identify and predict problems and offer potential solutions.