Customer Lifetime Value (CLV)
Customer lifetime value (CLV) predicts the value that can be attributed to your entire future relationship with your customers.
How do you calculate customer lifetime value (CLV)?
CLV is calculated by multiplying your Average Order Value (AOV) by your average purchase frequency rate.
AOV x Average purchase frequency rate
Why is customer lifetime value important?
Customer lifetime value is important not only because it helps identify and segment the most loyal customers, but it also tells you how well you’re resonating with your customer base, how much your customers like your products or services, what you’re doing right.
It also helps identify areas where you can improve, as well as helping you to make decisions around how much to invest in your customers.
How do you increase customer lifetime value in luxury?
Qubit works with leading brands in the luxury space to help deliver personalized and exclusive experiences that drive customer retention and greater brand loyalty.
Qubit launched a set of personalization solutions dedicated to brands looking to deliver highly impactful and meaningful customer experiences, including:
Promoting fashion capitals - luxury customers like to have their finger on the pulse of what is happening in the world’s fashion capitals, so showing them what is trending in each of these areas will encourage customers to engage deeper and further with your product catalog
Preference selection - by allowing customers to express preferences such as the types of products they typically shop for, the occasion they’re shopping for, or what their style is, you’ll enable them to move quickly through the purchase funnel to conversion
VIP targeting - Luxury customers expect a second-to-none, in-store experience; replicate this online, and ensure that your highest spenders feel catered to by displaying relevant offers, exclusive product launches, and event invites.
Read more about the most effective luxury personalization strategies to increase customer lifetime value.