E-commerce strategies
-Time represents a fundamental factor for the implementation of effective personalization activities and one of the most effective aspects to affect the increase of customer value, that is, their lifetime value.
But let’s take a step back, what do we mean by customer lifetime value ( CLV )?
Customer Lifetime Value: What’s Behind Every Customer?
Managing real-time interactions beyond CLV
Customer Lifetime Value and Real-Time Interaction Management: The People-Based Approach Wins
Customer Lifetime Value: What does it mean ?
Defined as one of the fundamental metrics in the field of e-commerce, the Customer Lifetime Value , it allows to know the value that a customer can generate over time , thanks to an estimation of their purchasing behavior.
It is precisely because the Customer Lifetime Value starts spain mobile database from a kind of estimation of purchasing behavior that there are several formulas and calculation models in the literature.
The simplest model is the following formula: Customer Lifetime Value = average value of a purchase * number of times the customer buys each year * average duration of the customer relationship (in years).
As can easily be guessed from the formula, what contributes to the definition of Customer Lifetime Value, in this case, is above all the “historical” data relating to purchasing behaviors observed over time.
In this regard, it is interesting to note the approach proposed by Rusty Warner, researcher and analyst at Forrester Research, according to which the Customer Lifetime Value must be overcome and rethought as a result of a continuous interaction between the brand and the customer where the value is built and amplified through personalized interaction methods , possible thanks to a deep knowledge of the customer and a real-time update of the profile.