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Life Time Value (LTV) Analysis

When making decisions about customer investments it is necessary to estimate the total value of customers over the whole period during which they subscribe to the company's services. LTV analysis is a tool designed to cope with this problem. It combines the elements of customer value and survival time models, as well as takes into account the effect of changing currency value by using a discounting factor. The outcome of the analysis is a financial quantity - LTV of a customer, which at present is the most accurate measure of the future value of a customer.

StatConsulting offers modern LTV models for the segments of domestic as well as business customers. Our LTV analyses support sales and retention procedures by selecting the optimal investment strategies, which guarantee the highest return curve for a subscriber. We have wide experience in performing LTV analyses and have developed dedicated analytical tools for assessing the future value of the customers.

The employment of LTV models provides a significant competitive advantage in planning and management of marketing processes. LTV analyses are also capable of identifying factors which positively or negatively impact the future value of customers.

 

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