Customer lifetime value (or lifetime value - LTV), is the average amount of money your customers will spend on your business over the entire life of your relationship. To create highly targeted campaigns designed to proactively boost engagement, increase acquisition rates, improve conversion, raise average order value, requires the quantification of CLTV, so that each customer segment and individual customer can be targeted based on their project value.
Quantzig’s approach combines the application of dynamic micro-segmentation and predictive modeling techniques to accurately forecast the lifetime value of a customer based on their purchase history, demographics and other behavioral traits. By perceptively segmenting the customer base into granular, homogeneous segments, analyzing the segment migration patterns, and identifying the factors that significantly affect the variety and value of the products they purchase we help organizations develop unique methods for evaluating the customer lifetime value for each client across different industries.
Today retaining existing customers is more important and cheaper than acquiring new ones from a business perspective as it helps reduce maverick spending, resources, and time. Using Quantzig’s customer lifetime value models, your organization will be able to accurately predict the revenue each customer will generate in order to devise cost-efficient strategies aimed at improving the share of wallet from that customer.
A robust customer lifetime value model can also help you focus on retaining potential customers who can bring in more revenue in the future.
Analyzing individual customer preferences and product affinities are crucial to offering highly personalized and relevant experiences. However, owing to the influx of data from different sources, your organization may find it challenging to create a single thread of the customer data, combining all sources. Quantzig’s approach to customer journey mapping revolves around deploying a customer lifetime value model to map the customer journey across all customer touchpoints (POS, social, mobile, kiosk, e-commerce and surveys) to enable a complete view of each customer interaction with your business and allow for an in-depth analysis of the performance of each channel.
The implementation of analytics models for quantifying customer lifetime value calculation is often neglected, leading to sub-optimal targeting across a fragmented customer base and inefficient allocation of marketing spends. We offer advanced customer lifetime value modeling solutions that focus on identifying profitable customer groups, helping you optimize your marketing spend.