Customer Lifetime Value (LTV)
Customer Lifetime Value, also known as LTV, is a calculation of the revenue a customer will generate over the course of their relationship with a company. It’s a given that organizations want their acquisition budgets to go towards the high-value customers that are likely to spend more and stick around longer, but how exactly is this accomplished? Simply put, with a whole lot of data and a balanced strategy.
Is Key to Your Success
In an increasingly customer-centric world, understanding your Customer Lifetime Value (LTV) is critical to marketing success. Knowing this key piece of information allows you to:
- Truly understand the value of your customers, from the cream of the crop to the less than ideal, by going beyond clicks and page views
- Calculate your ideal customer acquisition spend
- Determine where marketing resources will be most appropriately utilized
- Evaluate campaign success and ROI
To Calculate LTV
Calculating Customer Lifetime Value starts with quality, non-siloed data. Our expert consultants will first ensure a solid digital analytics foundation is in place, addressing any data quality concerns. We'll then assess integrations to tie together your acquisition platforms, CRM and other systems to create a 360° view of your customers from initial touchpoint through to purchase.
Once your high-value customers are identified, we'll help you develop a plan to engage with them at a deeper level, from tailoring your messages and offering to being highly attentive.
Strategies for managing medium and low-value clients will also be assessed, ensuring your valuable acquisition budget is going towards high-ROI activities for all customer types.
Google Analytics 360
With Google Analytics 360, you unlock extra tools that will allow you to:
- Value your customers as a whole or based on defined segments
- Better evaluate the appropriate spend to acquire customers within each segment
- Develop a budget for retention of high-value customers
- Distinguish between active, growing customers and customers that are disengaging
- Measure campaign success against a forecast based on Customer Lifetime Value
Customer Lifetime Value
InfoTrust has partnered closely with Peter Fader, co-founder of Zodiac and author of Customer Centricity: Focus on the Right Customers for Strategic Advantage, for events focused on leveraging data as a key component to discovering your Customer Lifetime Value and developing a customer-centric approach to sales and marketing.
Interested in getting started on your Customer Lifetime Value journey? Check out these joint webinars with Peter Fader and Michael Loban, of InfoTrust.
Offine transactions which had 0% visibility and were dependent solely on inaccurate or incorrect customer feedback are now fully attributable to their proper marketing channel. This allows us to make quick, smart decisions on trends across all forms of marketing, both online and offline, and how consumers jump from desktop to mobile and office computers.
— Robert Prentice, Director of Marketing & Product Development, Pelican Water Systems
Pelican Water Systems contacted InfoTrust for assistance in better understanding their full marketing-to-sales cycle. We integrated their CRM data, importing offline sales activity and sales into Google Analytics, and implemented Enhanced eCommerce to provide deep customer insights.