CUSTOMER LIFETIME VALUE

Customer lifetime valueCustomer value development or Customer Lifetime Management is essential in every company nowadays. Acquiring new customers costs more than retaining existing customers. But how loyal are your customers and when and why do they regularly buy from your competitor? In order to gain better insight into the so-called Customer Lifetime Value, it is essential to monitor the “customer journey”. In this way it can be predicted which customers should be approached how and when they buy. But what if your customer data is locked up in all kinds of data silos? How will you get more revenue from your customers if you don't know enough about them?

To create a 360 degree customer view it is necessary to get all customer data in one system so that it can be analyzed and segmented. When transaction and behavioral data has been collected over a longer period, smart AI and deep learning technology make it possible to use smart CDP system an RFM matrix can be built. This matrix helps you to identify your most valuable customers. This insight makes it easier to focus on your potential-rich customers and unnecessary costs can be saved.

MY COMPANY

What can I do to increase the customer value of my customers?

Getting a customer for the first time takes the most effort. Building a relationship with your customers takes time and a lot of money. Once you have convinced the customer of the unique selling points of your company, customer retention is much less expensive. But how do you actually get more value from the customer who has already bought from you? Customer value optimization is a combination of strategy, culture, systems and data analysis. Understanding the Customer Journey of your customers is the basis of Customer Lifecycle Management. The more customers perceive your company, product or service as relevant, the better you are able to influence their behavior.


HOW?

How can customer value optimization work in my company?

Good communication with the customer is essential to realize customer value optimization. In addition to one-to-one communication with the customer, data analysis of purchasing behavior and surfing behavior is essential. In this way we build a so-called 360 degree image of the customer. When it is known what drives a customer in his purchasing behavior, relevant communication can take place at the right time. The greater the relevance at the right time, the greater the conversion on your communication and it will not be regarded as undesirable but as a service. This may seem simple, but it certainly isn't in practice. There is a lot involved, both in IT and within the organization. This requires specific knowledge and experience.

Customer value optimization through Predictive Analytics

When the basic ingredients for customer value optimization and customer lifecycle management as described above have been filled in, the next step is to predict the behavior of your customers. We use Artificial Intelligence and Machine Learning solutions for this. With AI-powered Predictive Analytics methods, you can predict what your customers will buy when and even where. In this way you can prevent "no-sell" more easily, which results in an improved service experience. In addition, it ensures a better stock position which positively influences your cash flow.

Curious how you can increase the value of your existing customers?

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