Customer Lifetime Value CLV refers to the value of a customer over the course of the time they are with your business. It is calculated by multiplying their lifetime value with their average revenue per unit. The Customer Lifetime Value model is a tool used to calculate the overall financial worth of a customer and make decisions on how to maximize it. The model can be applied in various industries such as retail, telecommunications, and media.
It is the journey of a customer from the very first point of contact with any company until the point that they decide to leave for another company. Lifetime Journey has been defined as "the process by which a customer moves from one point in time to another, and each phase of this process creates value for the enterprise." It is important to understand that your b2c or b2b lifetime value as a customer is not just based on when you first came into contact with your company but also how long you've been a customer.
The clv sales management model is more efficient than the traditional way of managing the sales process. It helps companies to be more accountable for their performance and helps them to achieve better customer satisfaction rates. The value model is an integral part of the strategy that helps a company position itself in the market and provides them with a competitive advantage. It is also used by managers to make decisions about how they should allocate resources in order to build their business successively.