Essential Business Applications: Customer Lifetime Value ★★★ Expert Level
This one-day course is a deep-dive into one of the most important metrics in a company that wants to make its most important decisions data driven, customer lifetime value (CLV). CLV measures the predicted future looking value of a customer in his entire remaining relationship with you. It’s essential to understand how CLV works, what the challenges in developing a solid CLV calculation are, and how to use CLV to steer on customer value .
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Essential Business Applications: Customer Lifetime Value
About the courseCLV covers all aspects of revenue, costs, risk and customer duration. Because CLV is calculated on an individual level for all customers, it is possible to identify and, if necessary reduce differences between customers. You can even consider implementing price differentiation, for example if you know that a customer stays longer than another customer, or if a customer has a chance to purchase even more services or products in the future. Why would that customer pay more than necessary? The strength of CLV is that you value every customer!
Why this is for youThe spread between individual customers in customer value is enormous. Having a strong customer lifetime value calculation opens doors. It enables companies to vary in approaches, offerings and process optimization and these are just to mention a few applications of CLV. However, building strong CLV models is not easy, and having a thorough understanding of CLV is therefore essential to take on this challenge.
For whomThis training is suitable for a very broad public. Not only is it perfect for data scientists and data engineers who want to deepen their knowledge on data and modeling challenges in CLV and want to be inspired on the applications of CLV. But also business experts that want to be involved in customer value steering (or already are involved) should follow this training to be inspired on new opportunities and build a better understanding of the development of the CLV metric and its use.
What you’ll learnBy going in detail trough the CLV building blocks and many inspiring case examples we convince ourselves of the value of CLV and how to face the challenges. With a big case and multiple smaller exercises participants will get some hands-on experience in calculating and applying Customer Value Management metrics. Since building a strong CLV models is not easy, we will explain the challenges in modeling the building blocks and how a iterative approach will help you get started quickly and add value in each iteration. You will get your hands dirty with applying your freshly gained knowledge into practice in the group discussions, the central case and exercises. This course is structured into four key learning topics:
- Create value via customer value management
- Model building blocks of customer lifetime value
- Opportunities of using CLV
- Customer experience
- At the end of this course, you will be able to:
- Define the benefits of Customer Value Management and to explain what Customer Lifetime Value (CLV) is.
- Define the building blocks of CLV in different settings and how to address their modeling challenges
- Understand the different opportunities of CLV and be able to translate to valuable opportunities for your organization/team
- Know the basics of Customer Experience Management and how to steer on customer experience via different metrics
- Understand how to use CLV personally in your daily work