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Customer Lifetime Value Optimization
The CLV Metric
Customer Lifetime Value measures total revenue a customer generates over their relationship with your brand. Increasing CLV is more profitable than constantly acquiring new customers.
CLV Drivers
Repeat Purchases: Encourage additional purchases through retention strategies.
Higher Order Value: Increase basket size with cross-selling and upselling.
Referral Value: Acquire new customers at lower cost through referrals.
Optimization Strategies
Segment customers by CLV. Create retention strategies for high-value customers. Design acquisition campaigns targeting high-CLV prospects.