Check out my post on how to action the results from a customer lifetime value model from the Cardinal Path blog! No matter what analysis or model you are doing for a business, it is all useless if the model doesn’t get used. Learning what decisions can be influenced by what approach will help drive your business to improve ROI and use data for organizational change!
A customer lifetime value (LTV) analysis is the best way to figure out which type of customers provide the most value to your business.
An LTV analysis attempts to predict the value that a customer brings to your business over their whole customer life cycle. That is, how long will they remain a loyal customer, and when are they likely to churn? How much money will they spend with your business, and how often? What are the acquisition costs associated with this customer?
We can use both traditional statistics and financial techniques in order to answer these questions, but once you have this information, how will you take action on it?
You can learn how to take action from the original post here.