What is Customer Lifetime Value?

Why is it important to calculate and track CLV?

  • Customer Acquisition: When you know what you will earn from a typical customer, you can increase or decrease spending to ensure you maximize profitability and continue to attract the right types of customers.
  • Improve Customer Retention: One of the biggest factors in addressing CLV is improving customer retention and avoiding customer attrition. Tracking these details with accurate segmentation can help you identify your best customers and determine what’s working well.
  • Forecasting: CLV forecasts help you make forward-looking decisions. Without a forecast, you could unknowingly overspend and waste money or underspend and put yourself in a bind where you struggle to keep up with demand.

How to calculate CLV?

How banks can improve and boost their CLV?

#1. Optimize the Onboarding Process

#2. Offer Your Clients a Personalized Experience

#3. Build strong relationships with your customers

#4. Provide a High-End Customer Service with Omnichannel support

#5. Focus on Upsell and Cross-Sell

#6. Run Loyalty Programs with exciting rewards

#7. Listen to Your Customers: Collect Actionable Feedback

#8. Analyze customer data, detect pain points to provide solutions

Final Thoughts

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