Customer Lifetime Value (CLV) is a metric that quantifies the total revenue a customer will generate over their lifetime. It is quickly becoming the go-to metric for businesses looking to drive revenue through customer experience initiatives.

CLV is a powerful metric because it helps businesses understand a customer’s long-term value and identify customers who are bringing in the most value. By understanding the total revenue a customer will generate over their lifetime, restaurant owners can make more informed decisions about allocating resources to acquire and retain customers. For example, a restaurant may be willing to spend more money on acquiring a customer if they have a high CLV, as that customer is likely to generate more revenue over the long-term. 

Understand the impact of customer experience on revenue. CLV is also a useful metric for understanding the impact of customer experience initiatives on revenue. By analysing the CLV of different customer segments, businesses can identify areas where they need to improve customer experience to drive revenue. For example, if a restaurant finds that customers who have had a positive customer experience have a higher CLV than those who have had a negative experience, they may want to invest more resources in improving customer experience. 

Identify the most profitable customers. CLV is also a valuable metric for identifying the most profitable customers. By analysing the CLV of different customer segments, restaurant owners can identify the customers who generate the most revenue and focus their efforts on retaining and growing these customers.

How YUMBI can help you calculate CLV and create customer experience campaigns

YUMBI reports can pull valuable data to enable you to determine customer experience and profitability by customer segment. This allows you to gather the information you need to calculate CLV, such as customer acquisition costs, customer retention rates, and average revenue per customer.

Analysing customer data can help you tailor your value proposition, increase customer loyalty, and optimise marketing efforts by focusing on effective strategies.

How YUMBI can help you build and implement campaigns to grow CLV

According to a recent survey*, 62% of consumers state that they will lose loyalty to a brand if they receive an impersonal experience. Personalised marketing campaigns, such as tailored product recommendations, timely and relevant offers, and a consistent experience across all platforms, can help create a rich customer experience that encourages repeat purchases and ultimately increase lifetime value for the brand.

YUMBI Engage is the perfect platform to implement your CLV strategy. It offers a high degree of customisation, a flexible e-vouchering system, and specific targeting criteria for increased reach, brand loyalty, and driving purchase behaviour that increases order frequency, spending, and overall CLV.  

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*Twilio Segment State of Personalization Report