CUSTOMER LIFETIME VALUE (LTV)
The pareto principle states roughly 80% of the effects are caused by 20% of the action. The same principle is applied in business and marketing. Roughly 80% of your revenue is gained by 20% of your customers. Not all customers acquired are equal, some are more valuable than others. This whole process of ascertaining certain value to a customer is called Customer Lifetime Value (CLV). Many companies don’t attempt to calculate CLV, citing the challenges of aggregating the data from various departments. That’s where Radon Media Steps in. We have a set procedure of conducting LTV analysis and calculating the value of the most profitable customer segment.
What is Lifetime Value Analysis?
Customer Lifetime Value (CLV) or Lifetime Value (LTV) is a key metric that illustrates a prediction of the net profit of an entire future relationship with a customer in marketing or e-commerce.
With the help of LTV analysis, Radon Media, assists businesses to decide the advertisement spend and take the right decision. The budget that we allocate for your advertising ensures that your expectations from every single customer is met in the long term. Calculating customer lifetime value for ecommerce is different from customer lifetime value calculation for B2B businesses.
Use cases of customer lifetime value analysis depends on business model. Hence customer analysislifetime value calculation also differs with each business. Some general advantages include:
- Identifying your highest value customers
- Identify touch points where the high value customer generally converts
- Identifying the likelihood of a prospect turning into a high value customer earlier in the sales cycle
- Measure Revenue at each touch points
- Understand the metrics of purchase behaviours of high value customers.
Conducting a customer lifetime value analysis and identifying such data points is where Radon Media thrives. The LTV analysis is complex, but once done, the payoffs are significant. Especially for ecommerce, the customer lifetime value is what helps them scale the business.
How Do We Conduct your Customer Lifetime Analysis?
Customer lifetime value calculation depends on your business model. SO it’s hard to generalize the process in a standard fit. Ecommerce customer lifetime value is different than that of a B2B sector. But Radon Media has devised a methodology for LTV analysis based on our previous experience.
Auditing Your Current Marketing Channels
At first our consultant monitors your performance contributing factors like website designs , ads to see the effectiveness of your marketing campaigns and understand how it will improve the lifetime value of the customers.
Developing a Strategy
We then develop a marketing strategy with different ‘if-then’ scenarios to investe the effect of each variable on the LTV of your customers.
Use Reports to track the Scenarios
Using the reports provided by tracking platform we look at customer lifetime value by acquisition channels, campaigns source and mediums to check if your business is underspending for overspending on these platforms.
Categorizing the Customers
Various tests are then run to validate the best performing channel that will help you grow your ROI. Then we categorise the customers based on the lifetime value and the platform through which they were acquired.
Customizing your Message
Categorizing and calculating customer’s lifetime value help us deliver customized messages and incentives to each group of customers to thereby constantly monitor the effectiveness of your loyalty programmes.
Why Prefer Radon Media?
Our Experience
Having worked across 250+ clients, Radon managed spends worth Rs. 1,000+ Crores across a wide spectrum of industries.
Our Specialization
Radon Media specializes in boosting the ROI. Our marketing strategy will ensure your business skyrockets in your domain crushing all the competition.
Unique Methodology
We helped business gain speeds by following a unique methodology. We have the secret sauce to make your business gain pace in the market.
Brilliant Tools
Our intelligent tools works as a catalyst to boost your revenue and tell exactly how your business operates digitally. We have the data centralization tool which integrates all the marketing and sales data in one place and help you map user journeys.
Effective Team
We have an effective who manages your campaign right from the beginning and helps you every step of the way. Working with Radon Media will show how an effective team can change your business scenario.
Planning to get started with Customer Lifetime Value?
Let’s discuss your project! We’d love to hear from you!
