### Date : 2024-06-04 22:33 ### Topic : Customer Lifetime Value (CLV) #마케팅 #공부 ---- Customer Lifetime Value (CLV) is a key metric in marketing that estimates the total revenue a business can expect from a single customer account throughout their relationship with the company. Understanding CLV helps businesses make informed decisions about how much to invest in acquiring and retaining customers. Here’s a detailed explanation of CLV: ### Components of CLV 1. **Average Purchase Value (APV)**: This is the average amount a customer spends per purchase. 2. **Purchase Frequency (PF)**: This indicates how often a customer makes a purchase within a specific period. 3. **Customer Lifespan (CL)**: The average duration (in years, months, etc.) a customer continues to buy from the business. 4. **Profit Margin (PM)**: The percentage of revenue that is profit after accounting for the cost of goods sold and other direct expenses. ### CLV Calculation The formula to calculate CLV can vary depending on the complexity and the specific factors a business wants to include, but a simple and commonly used formula is:  ### Steps to Calculate CLV 1. **Determine Average Purchase Value (APV)**: - Calculate total revenue over a period (e.g., a year). - Divide by the number of purchases in that period. 2. **Determine Purchase Frequency (PF)**: - Divide the number of purchases by the number of unique customers during that period. 3. **Determine Customer Lifespan (CL)**: - Estimate how long, on average, a customer continues to purchase from the company. 4. **Determine Profit Margin (PM)**: - Calculate the profit after accounting for the cost of goods sold and other direct costs, divided by total revenue. ### Example Suppose a coffee shop has the following data: - Average purchase value (APV): $5 - Purchase frequency (PF): 20 times per year - Customer lifespan (CL): 5 years - Profit margin (PM): 10% (0.10) Using the CLV formula: \[ \text{CLV} = 5 \times 20 \times 5 \times 0.10 = \$50 \] So, the customer lifetime value for this coffee shop would be $50. ### Importance of CLV 1. **Strategic Decision Making**: Helps in determining how much to invest in customer acquisition and retention. 2. **Customer Segmentation**: Identifies which segments are most valuable and helps tailor marketing strategies accordingly. 3. **Profitability Analysis**: Focuses efforts on retaining high-value customers and increasing their value. 4. **Resource Allocation**: Guides resource allocation towards the most profitable customer relationships. ### Increasing CLV 1. **Enhance Customer Experience**: Improve service quality and customer satisfaction to increase loyalty. 2. **Upselling and Cross-selling**: Encourage customers to purchase more expensive items or additional products. 3. **Retention Programs**: Implement loyalty programs, personalized offers, and follow-up communications. 4. **Customer Feedback**: Use feedback to continuously improve products and services. Understanding and effectively leveraging CLV can significantly impact a company's growth and profitability by focusing on long-term customer relationships and maximizing customer value.