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Customer Lifetime Value
Kathy avatar
Written by Kathy
Updated over 2 months ago

The Customer Lifetime Value visualization shows the average revenue generated per customer across different periods. This metric is crucial for understanding customer value, predicting future revenue, and optimizing marketing strategies


Key Insights

Each month on the horizontal axis represents when customers first purchased, allowing you to track how customer value evolves.

  1. Quick Growth: Large jumps between 3 and 6 months indicate strong early engagement

  2. Plateau Points: Where values level off between periods, showing natural customer lifecycle breaks

  3. Seasonal Impact: Monthly variations that might indicate seasonal purchasing patterns


Action Items

Marketing Investment

  1. Calculate acceptable customer acquisition costs

  2. Allocate budget based on projected return

  3. Target high-potential customer segments

Product Strategy

  1. Identify products that drive higher LTV

  2. Develop product bundles based on purchase patterns

  3. Time new product launches for maximum impact

Retention Programs

  1. Design interventions before plateau points

  2. Create targeted offers for specific LTV segments

  3. Develop win-back campaigns for churning customers

When LTV Shows Early Plateau

  1. Review product mix and recommendations

  2. Analyze customer journey for friction points

  3. Launch re-engagement campaigns

  4. Test new cross-sell strategies

To Increase Overall LTV

  1. Implement subscription programs

  2. Develop loyalty rewards

  3. Create product bundles

  4. Optimize pricing strategy

  5. Enhance customer service

For Declining LTV Trends

  1. Survey customer satisfaction

  2. Review competitive landscape

  3. Analyze product performance

  4. Evaluate pricing strategy

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