How to become a 'CLTV Aligned' organization?

Customer Lifetime Value (CLV or CLTV) helps organizations answer this question. Further, CLTV also helps organizations enhance effectiveness of strategies ranging from customer acquisition to customer value enhancement.

Fractal has offered customer lifetime value solution across multiple industry verticals including:

Insurance: A US based Property &Casualty Insurance major aligned its customer management strategy based on our CLTV solution. (Link to Case-Study)

Financial Services: A leading bank based its credit card re-activation campaign on Customer Lifetime Value solution provided by Fractal. (Link to Case-Study)

Retail: A US based retailer has streamlined its Loyalty Management Program and customer decision making based on Fractal's CLTV solution.

“The Science Behind CLTV”

Customer Lifetime Value (CLTV) is calculated as the value a customer generates for the entire lifetime. It is the sum of the historic customer value and the predicted future lifetime value.

CLTV = NPV (CM1 - Cost1, CM2 - Cost2, .......,CMt - Costt)

“The Art of using CLTV”

Like any other powerful tool, using CLTV is an art. "Lifetime profitability ranking of customers in monetary terms" is a new concept made possible by huge amount of data available with the organizations. However, measurement alone will not lead to significant returns out of CLTV. Keys to successful CLTV implementation are:

Commitment from top management; and

Alignment of customer specific decision making of various departments to CLTV

Fractal's MDEM (Measure, Demonstrate, Execute, Monitor) framework helps organizations successfully implement CLTV and achieve enhanced RoI in an ongoing basis. Please refer to Fractal's white paper on CLTV for details - "How to become a ‘CLTV Aligned’ organization?"