Customer Lifetime Value

Distinguish between customers based on business value.

It’s not practical to treat every customer exactly the same. Each one can and should receive different marketing messages, different offers, even different levels of service. To maximize profit for your business, you need to know which customers represent the most in terms of future revenues and profit. Data science can do exactly this. Then, you can optimize your customer relationship management efforts in a way that ensures the best possible business outcome.

Quantify customers' potential value

Predict the lifetime value of each customer, based on everything you know about them. Understand just how important each is to your future success.

Differentiate marketing and service

Communicate and interact with each customer based on their long-term importance to your business, not just surface observations. Ensure each gets the experience they deserve.

Find valuable prospects

Use profiles of your most valuable long-term customers to identify and acquire prospects with similar characteristics. Target acquisition marketing to best effect.

Increase revenue and margins

Stop wasting service and retention efforts on customers that don’t merit it. Focus on the most profitable customers to grow your business and accelerate success.

Get Started on your Customer Lifetime Value project today

Contact us today to get results quickly with our RapidMiner "Customer Lifetime Value" template, you can train, optimise, and evaluate.

1

Load a dataset with all available information about customer, not just the obvious signs.

2

Edit, transform & learn (ETL) and prepare data: Mark the target label column.

3

Model validation is key! This cross-validation splits the dataset for training and, then, for independent testing. This splitting is done several times to get a better performance estimate.