Collection of certain metrics e.g. average customer lifetime = trepeat purchase rate = rprofit margin per customer = pdiscount factor = iaverage contribution margin = m; averaging the variable values egshopper spend per visit = spurchase cycle = caverage spend per customer = a; Calculation of customer value using various formulas. using different formulas. The following three formulas are the Disadvantages of using Customer Lifetime Value The use of the customer value has the advantage that the company can use most commonly us variants CLV-Formel Klassik m x r / + i – rCLV-Formel Standard formula simple.
The calculation can be carri out
These formulas are particularly useful for calculating the customer lifetime value of customers who shop online. the help of the online shop’s analysis software Uruguay Phone Number List the company is able to filter out the individual calculation. Surprisinglynot all companies have yet recogniz the potential of such data collections and software programs and are lagging behind. Aim of the calculation of the customer lifetime value For the customer himselfthe customer value is not very interesting. The companyon the other handcan use the customer lifetime value to optimize its marketing strategies. Bas on the calculat amountsthe company can use its customer management to tailor individual measures to the respective customer.
Values that are requir for the
The higher the customer lifetime value of a buyerthe more resources financial expensespersonnel the company should invest in maintaining this KY Lists customer relationship. On the other handif the customer value is lowsupport also known as customer relationship management CRM or resource management will be limit. Goals that the company can pursue using customer value are optimization of advertising measurescontrol of customer managementstrengthening customer loyaltyacquisition of new customersIncrease in corporate profit. Ultimatelycustomer lifetime value is about monitoring the so-call return on investment ROIi.e. looking at how high your own effort is compar to the income.