Optimise customer lifetime value

Optimising the lifetime value of valuable customer segments can be key to identifying which customers to target, and which segments to prioritise for the development of retention programs.

Customer lifetime value (CLTV) is a measure utilised to quantify the "present value of the future cash flows attributed to the customer"*, or in layman terms, how much a customer will spend with an organisation over the lifetime of the relationship.

iRetain^© can be configured to a business' specific classification of customer values, match these with attrition triggers for each group of customers and execute customised retention strategies at the point of attrition. These strategies in effect dictate how much effort is placed on retaining that specific grouping of customer. This enables organisations to intensify focus on retaining high value customers and minimise their churn levels.

Consequently, selective customer retention through lifetime value identification can be utilised as an efficient and effective means for developing relationship marketing strategies and campaigns to maintain the relationship, and cross or upsell products.

iRetain^© 's integration with existing CRM systems and transactional systems assists with maximising CLTV through enhancing product data information that can be utilised to fine tune product offerings or portfolios. At the point of attrition, iRetain^© can "recommend" more appropriate offerings for the customer based on their profile and transactional history, therefore maximising the potential value of the customer.

For more information

Contact iRetain^© today to discuss how your business can benefit from intelligent customer retention on 1300 725 717 or email info@i-retain.com

* Source: Pfeifer, P., Haskins, M., Conroy, R., Customer Lifetime Value, Customer Profitability and the Treatment of Acquisition Spending, Journal of Managerial Issues, Spring 2005