Customer Lifetime Value is the risk-adjusted operating margin for an individual customer for the next two to five years. It can be applied as a scoring model to predict the most profitable strategies and tactics for a customer segment.
Mather leverages the total CLV across the subscription base as a KPI to track measurable progress towards improving long-term profitability. We use predictive models to dynamically calculate CLV under alternative strategies. Many strategic decisions require tradeoffs between average revenue per user and customer volumes. Mather’s approach to CLV can identify the long-term profit-maximizing strategy for your company.
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