Customer Lifetime Value (CLV)
Problem
- Lacking a measurable marketing strategy in customer relationship management.
- Unable to determine the effectiveness of marketing efforts.
- Need to increase pricing without losing customers to competition.
- Unable to determine the lifetime value of diverse customers.
Action
- Created a "Customer Lifetime Value" (CLV) formula using existing consumer data
- CLV data enabled estimation of customers’ profitability and the long-term growth potential of the bank
- CLV data used for pricing analytics models, maximizing revenue potential without losing customers
- Bank can calibrate customer rewards program, upsell & cross-sell activities using CLV data
200
%Increased efficiency of marketing activities
5
%Increase in customer retention
25
%Greater revenue from targeted customers