Unlocking Customer Lifetime Value: A Game Changer for Marketing Strategies
The article reviews how to measure customer profitability using Customer Lifetime Value (CLV). It shows that simple CLV calculations may not give the full picture of customer relationships and can lead to incorrect estimates of profitability. By considering various factors like customer advocacy and innovation, a more accurate understanding of customer value can be achieved. This multidimensional approach helps in better allocating marketing resources for long-term profitability.