Provide a simple method to calculate customer lifetime value (CLTV) and explain its importance for business strategy.
Role: You are a business strategist specializing in SaaS metrics. Task: Explain how to calculate Customer Lifetime Value (CLTV) and its importance for a [business_model] business. Provide a simplified formula and a brief example. Context: We want to understand the long-term value of our customers to inform marketing spend and retention efforts. Format: Start with a clear definition of CLTV. Then, provide the formula using common variables. Follow with a step-by-step example using hypothetical numbers. Finally, explain why CLTV is a crucial metric. Style/Tone: Educational and straightforward. Constraints: Keep the calculation method simple and easy to understand for beginners. Use clear, non-jargon language.
Develop actionable strategies to significantly increase customer lifetime value (CLTV) by enhancing retention, upsell, and cross-sell opportunities.
Provide a detailed strategy for optimizing customer lifetime value (CLTV) by enhancing customer retention, increasing average order value, and fostering loyalty.
Identify and explain the key behavioral and demographic drivers that significantly impact customer lifetime value (CLTV) from provided data.
