Customer Lifetime Value (CLTV)
This project aims to answer a few primary questions:
- How long can we expect to retain a newly acquired customer?
- What value can we expect a newly acquired customer to yield over their lifetime?
- What is the lifetime value (CLTV) of defected customers and how does that compare to the life-to-date (LTD) value of our active customers?
- Given the lifecycle and repurchase behavior of our customers, should we consider investing more aggressively in acquiring new customers? Or do we need to focus on maximizing the profit generated from each customer at the time of acquisition?
- Will loyalty programs work for our business?
- What is our average customer acquisition cost (CAC)?