Part of understanding your customers is knowing not only the actual revenue and profitability at an individual customer level, but also the potential value of each customer throughout the life of their relationship with you. Forecasted lifetime value varies from customer to customer based on factors such as life stage, demographics, depth and breadth of the current business relationship, and historical transaction patterns.
Modeling lifetime value at an individual customer level is the first step. The next step is making this model actionable as a key piece of segmentation information used to provide differentiated treatment of customers in Marketing, Sales and Customer Service.
Pinpoint helps its clients build models that accurately forecast each customer’s lifetime value to the firm, by identifying the determinants of customer lifetime value (CLV) that apply to your business. CLV models are used to score customers in real time at the point of an inbound interaction, such as a website session or call, so that the latest CLV information helps drive how you respond to each customer. Our clients seek to improve the current value of their highest-CLV customers through cross-selling campaigns and other means of increasing their brand’s “stickiness” with these customers.