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1. Why is a costomer lifetime value important to a marketer? 2. What surprised you the...

1. Why is a costomer lifetime value important to a marketer?

2. What surprised you the most social media marketing and analysis?

3. What would you want to learn more about social media?

ps : Marketing Analytics

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Answer #1

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Customer life cycle or Customer lifetime value (CLV) is the future prediction of profits based on all the value obtained from maintaining a good customer relationship. Good customer relationship plays important role in revenue generation. CLV helps the company to optimize the cost for acquisition process.

Customer lifetime value is important to a marketer because: -

  • Customer lifetime value helps the marketers to identify which customer is more valuable and how much they should spend in acquiring the customer.
  • CLV is used to identify a long term relationship with the customer by comparing the acquisition cost and lifetime value and if life time value is more than the acquisition cost, the relationship is considered as profitable.
  • CLV is very important because it helps the organization to take decision based on the long term profitable relationship with the customers.
  • CLV helps in determining the investment required in marketing activities.
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