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Business

Customer lifetime value calculation


 

The CLV for his billboard is 720 euros, and the CLV for mobile advertising is 850 euros. But the CLV for search ads is 1550 Euros, which is higher than his overall CLV of 1250 Euros. He should consider putting more advertising budget into search advertising for businessmen. Sergio’s CLV calculations also helped him identify the most valuable potential customers for the company: merchants. When he calculated the CLV of his merchant customers, he found that they usually order at his company more than once a year, so their average annual number of transactions is higher than other customers. He also found that they kept customers longer than the 5-year average of other customers, and they spent more. So Sergio should do more than just increase his search advertising budget. He should consider spending more on the marketing of general merchants.

 

business management

customer lifetime value calculation

https://www.newbusinessmanagement.com/2021/10/customer-lifetime-value.html

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