When businesses think about customers, they would often link them to transactions and revenue. Consumers purchasing trends and patterns are often what companies focus on the most. However, simply valuing consumers over the short term isn’t enough to make a high profit for businesses. Here is how consumer lifetime value plays a crucial role in benefiting companies in the long term. Rather than thinking about how to acquire more customers while lowering costs, consumer lifetime value helps you to optimize your long-term acquisition spending for maximum value.
Let’s discover in this essential guide:
- What is Consumer Lifetime Value?
- How to Calculate Consumer Lifetime Value
- Why is Lifetime Value important in eCommerce
- Strategies to increase Lifetime Value
- Examples of retention campaigns in eCommerce