The most common question that online retailers ask us at Custora is, “How can I increase my Customer Lifetime Value.” And not far behind is, “So what exactly is CLV?”
This makes a lot of sense. After all, CLV is by far the most important metric that online retailers should be measuring. Yet despite it’s apparent simplicity — it’s literally just the average amount of profit generated from each user over their lifetime as a customer — there is a lot of hidden complexity.
That is why we’ve decided to host an online class this Thursday, Jan. 31th, at 2PM EST. This class will be a basic introduction to Customer Lifetime Value, along with the opportunity afterward to ask the founders questions about your specific business.
The class will be about one hour long, and will cover the following:
- A Brief CLV Primer
Customer Lifetime Value explained, and why it’s the single most important metric for online retailers.
- Measuring CLV We’ll discuss the pros and cons of various methods — with a special focus on the benefits of the new Bayesian statistical approach developed by academics at The Wharton School and Columbia.
- Predictive vs. Historical CLV Why you can likely spend more to acquire each new customer and still increase profitability.
- Customer Segmentation by Source Know exactly what to spend to acquire each new customer from Google, Facebook, Groupon, etc.
- Case Studies Learn how retailers like Fab and Etsy have used CLV analysis to their advantage.
Afterward there will be a Q&A with the opportunity to ask questions specific to your business.
For anyone at a startup (or larger e-commerce company) that sells stuff online Lifetime Value is invaluable to understand, so we’re excited to give this a try. If you’re able to join us, please fill out the form below to RSVP:
We’ll send you an email before the event with instructions for how to join.