Customer Lifetime Value
Determining customer value allows companies to focus their sales and marketing activities on the most valuable customers (or customer groups) – both in acquiring new customers and in retaining the existing customer base.
With the Customer Lifetime Value, you can determine the value of your customers
Challenge
Managing new and existing customer relationships is a crucial task for marketing and sales teams. This requires the efficient use of available resources. Companies often face the challenge of identifying the most valuable customers (or customer groups) in the long term. However, manually calculating customer value is often a significant challenge, as it requires considering and relating various factors.
Approach
AI-based methods allow for the data-driven calculation of Customer Lifetime Value (CLV). This encompasses the projected revenue expected to be generated by a specific customer over the entire duration of the future business relationship. The calculation utilizes historical shopping carts, purchases, and churn rates to enable the most accurate predictions for future development.
Result
AI is excellent for improving the accuracy of value-related forecasts. Reliable CLV predictions allow companies to focus their sales and marketing activities on the most valuable customers (or customer groups). This ensures that available resources are used as efficiently and profitably as possible.
Our strength
Our ecosystem enables a holistic view of data & AI.
years of experience in Data Science, ML, and AI
clients from 10 industries and growing
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successfully implemented Data and AI projects
How Customer Lifetime Analysis works
In customer lifetime analysis, the expected revenue is estimated based on a customer's (or segment's) purchase history. The AI model learns how purchasing histories have typically unfolded in the past and applies these patterns to the current customers (or segments).
Benefits of AI-based customer lifetime
With Data Science and artificial intelligence, companies can determine the value of their customers (or customer groups) automatically and efficiently.
Companies can precisely align their product portfolio, marketing activities, and sales strategies with the most valuable customers.
By focusing on the most valuable customers, satisfaction measures can be targeted to retain customers for the long term.
Customer Lifetime Value analysis enables companies to allocate limited resources in the right places.
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