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