CLTV prevents you from wasting your resources on a client that will bring you little benefit. Blind investments are dangerous as they can lead to serious losses. The Customer Lifetime Value optimizes your resources so that you invest in what really matters.
This metric helps improve your ROI with a minimal margin of error. Thus, you will be able to design strategies to improve engagement in a personalized way, creating customized loyalty programs.
The result is an increase in income and a decrease in expenses.
Within the calculation to obtain the Customer Lifetime Value, each brand uses a personalized formula that adapts to its financial reality.
However, all these formulas share a common calculation: the sum of the income that a client will generate during a specific period of time, minus the costs that the company has invested in that client. The result is the net value that the consumer has for your brand.
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