The CLV Factor in Customer Centricity

It bears repeating. Not all customers are equal. Some are worth more to your company than others. These customers should get the most focus and investment in your acquisition and retention efforts. Customer Lifetime Value (CLV) is the metric that helps identify them and is integral to your customer-centricity efforts.

In this edition of Centricity, we look at some of the factors critical to accurate CLV calculations to help ensure you get the most insights from them regarding your high-value customers.

July Issue Contents:

1. Feature: Do Macro Events Impact Long-term Customer Value
   
2. Concept of the Month: Covariate
   
3. Quiz of the Month: Test your knowledge about how CLV is calculated
   
4. Featured Resource: The Business Leader's Customer Lifetime Value (CLV) Impacts Checklist 
   
5. Video Spotlight: Where Do You Start When You Need to Bring Your CEO and CFO Along on the Customer Centricity Journey?
   
6. Save the Date: Upcoming Webinar

FEATURED

Do Macro Events Impact Long-term Customer Value?

A pandemic. A new technology. A recession. A natural disaster. Major events like these have the potential to impact customer behavior significantly — but how much and for how long? New research from Theta co-founder Dan McCarthy can help you avoid costly mistakes when predicting and leveraging customer lifetime value in your business strategy.

There’s no denying that the COVID-19 pandemic affected “business as usual” for companies across multiple industries. Lockdowns, social contact restrictions and other factors drastically changed many consumer behaviors, as well as consumer demand for various products and services.

Online food ordering and subscriptions for meal kits surged, while gym memberships and movie theater attendance dropped. Retailers without sufficient e-commerce channels saw sales plummet while the home improvement, healthcare and technology markets thrived. 

But what CFOs, CMOs, policymakers, investors and consumer behavior researchers want to know is: are these temporary trends or lasting changes? And is it possible to estimate the effects of other major events on customer behavior as well?

Continue reading this article in our Interactive Newsletter.

CONCEPT OF THE MONTH

Covariate

A variable that may affect the result of what is being studied. In terms of CLV, covariates are used to introduce information about a customer’s behavior to a model, as well as the business-level forces that may influence it.

QUIZ OF THE MONTH

How well do you know CLV?

This month’s quiz tests your knowledge of how your organization should calculate CLV.

FEATURED RESOURCE

The Business Leader's Customer Lifetime Value (CLV) Impacts Checklist

As a leader in your organization, you know that nothing in business is ever easy, including how you understand the long-term value of your customers.

Read more in the Interactive Newsletter and check out the Business Leader's Checklist of macro events and impacts to consider in your CLV analysis.

VIDEO SPOTLIGHT

Where Do You Start When You Need to Bring Your CEO and CFO along on the Customer Centricity Journey?

SAVE THE DATE

Webinar: Centricity on the Frontline

Theta Co-founder Pete Fader will be joined by Zach Anderson, Chief Data & Analytics Officer at Natwest Group to talk about his team's industry-leading and ROI-backed efforts implementing CLV across this UK-based financial services organization.

Tuesday, August 22nd, 10:00am Eastern Time

Get More from Theta

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The Issue of AI Hallucination in Writing Code for Predictive Models

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