What is Customer Life Time Value in Marketing Analytics?

Marketing analytics is a comprehensive and a very subtle area of specialization. Knowing it in a theoretical way is just not enough. It handles several factors responsible to make a successful and profitable sales to a most prospective buyer. Target marketing, diversity marketing and socio and psychological marketing play an important role too. 

Customer life time value in any business is the amount of time, money and willingness a customer has towards your brand or products and is willing to spend a certain amount of money with you for a time period. If customer is inclined towards the type of a service a business caters to or the quality and trust it believes the brand provides then by using customer life time value approach business can forecast the future money or money in anticipation from the loyal or prospective buyers.  It can save huge funds and also helps in recommendations.

The general idea for CLV is to always keep the interests levels of the customer high by knowing their preferences, buying patterns and several factors which make a happy customer.

In other sections I will show how to calculate the CLV Index and benefits of doing so.

Happy Learning!!

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