Customer lifetime value is the total worth to a business of a customer over the whole period of their relationship. It’s an important metric as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing customers is a great way to drive growth.
84% of marketers agree: They are not effectively segmenting and targeting customer sets for long-term value
THE TRUTH HURTS
Marketers are too focused on acquiring customers, and not focusing enough on how to foster loyalty and long-term value
43% rate their CAC (Customer Acquisition Cost) to LTV (Long-Term Value) average to best
25% rate it as below average or very poor
55% of marketers say aggregating the right data for a robust view of the customer is the most significant challenge they face in maximizing LTV
The data that would help them most:
44% Level of satisfaction
41% Customer lifetime value
37% Incidence of churn and defection
35% Customer purchase history
33% Brand loyalty
MARKETERS WORKING TO IMPROVE LTV
Most important requirements:
36% Humanizing connections
36% Aligning the organization
34% Offering products that fit needs
Most effective current initiatives:
47% Better communicating value proposition
42% More sophisticated targeting
42% Leveraging relevant marketing content
Marketers’ future plans
62% Unified view of customer
40% Lasting connections with customers
38% Dynamic customer-brand experience