You manage the Search strategy for an athletic apparel retailer. Which customer type will likely have the highest lifetime value?

You manage the Search strategy for an athletic apparel retailer.
Which customer type will likely have the highest lifetime value?

 

• Customers who have purchased at the retailer’s outlet location
• Customers who participated in the brand’s most recent holiday sale
• Customers who are members of the company’s loyalty program
• Lapsed customers who haven’t purchased from the brand in the previous year

 

Explanation:

While a company’s value-per-conversion (VPC) is important to consider when making marketing and advertising decisions, it’s often strategic to factor in other values as well. For example, repeat business and word-of-mouth can play a big role in a company’s bottom line. In addition, lifetime customer value (CLV) is another important metric to consider. CLV can be calculated at a company level, a customer segment level, or an individual level. By factoring in all of these values, companies can make more informed decisions about how to allocate their resources. Ultimately, this flexibility can lead to higher profits and more satisfied customers. Customers that are participating in a loyalty program are likely to have higher CLV. Because of repeated purchases.