Customer lifetime value (CLV) is a metric that tells you how much value a customer will bring to your store throughout the course of their relationship with you. By tracking CLV, you can hyper-target your marketing activities, investing in higher-cost ads and paid media to target high CLV customers, and using lower-cost email and similar media for low-CLV customers. Tracking CLV also allows you to measure the health of your store, and helps you better forecast financials.
Using the data that you integrate with Apteo, we're train custom A.I. models to learn how your customers behave and what they'll do in the future, which allows us to predict their future spend, even after just a single purchase. By combining these predictions with their historical spend, we're able to develop an estimate of the total value they'll bring to your store. Once we have the CLV of each of your individual customers, we can then provide a breakdown of average CLV across your store and across each customer segment, allowing you to get as detailed as you like when it comes to creating marketing campaigns based on the potential value of a customer.
As your customers continue to make purchases and interact with your store, our A.I. gets smarter and continues to learn, allowing it to improve its predictions, giving you a continuously updated view of your customers' potential.
How It Works
Apteo uses everything we know about your customers to build and train an A.I. model (for you data scientists out there, we use deep neural networks) based on a myriad of different attributes. The A.I. model makes a prediction about how much your customers will spend next based on the historical data from your store, and it updates that prediction for a customer whenever that customer makes a new purchase.
We record each customer's CLV and aggregate it across the store and your segments so you can get an estimate of how your store's CLV varies by customer and customer behavior.
How To Use CLV
You can use CLV to create new segments based on high or low value customers. You can then target segments with high-CLV customers with paid ads and media, while using lower-cost methods like emails for low-CLV customers.
You can also filter customers by their CLV on the Customers page and download the resulting list of customers to a CSV file, which you can then upload to Facebook, Google, or your email service provider in order to run a retargeting campaign.