Sikta RoyKnowledge Contributor
Explain the concept of customer lifetime value (CLV) and its importance in shaping marketing strategies.
Explain the concept of customer lifetime value (CLV) and its importance in shaping marketing strategies.
Customer lifetime value (CLV) measures the total revenue a business can expect from a customer over their entire relationship. It is important for shaping marketing strategies as it helps identify high-value customers, optimize acquisition costs, and allocate resources effectively. By focusing on retaining and nurturing valuable customers, businesses can improve profitability. CLV-driven strategies prioritize long-term customer relationships, enhancing loyalty and maximizing revenue.