Solutions | Customer Lifetime Value
Customer Lifetime Value
How much profit can the company make with a particular customer? The ability to estimate this amount represents an important advantage for a company.
Customer lifetime value is dependent on a number of elements :
- How long will this customer remain loyal to the company?
- Will the customer increase or decrease his/her consumption habits?
- Will the customer be willing to pay for profitable services and products?
Predictive analytics techniques identify which factors best explain these elements and which variables are the best predictors: i.e. will yield the best forecasts.