Customer Analytics For Dummies

The CLV is the total profit that an individual customer generates for your business over his or her lifetime. The customer lifetime is the time period that starts when a customer first uses your business (in person or online) and ends when he buys his last service or product from you. The CLV covers the entire relationship you have with that specif

It is not a job description. Stay away from minutiae like tasks, duties, and responsibilities. Concentrate on skills, attitudes, motivations, environment, and goals.

The appropriate time frame, called the purchase cycle, depends on the industry.

CLV is intimately linked to customer loyalty

calculating the CLV of different customer segments helps orient your marketing strategy.

In order for your business to be profitable and financially sustainable, it is essential that the CLV outweigh the customer acquisition costs.

By far the most common and fundamental measure of customer attitudes is customer satisfaction. Customer satisfaction is a measure of how well a product or service experience meets customer expectations. It’s considered a staple of customer analytics scorecards as a barometer of how well a product or company is performing.

One of the primary reasons for segmenting customers is that not all customers generate the same revenue or profits

Personas are fictional customers based on real data obtained from customer segmentation analyses, ethnographic research, surveys, and interviews.