One of the most valuable applications of customer lifetime value (LTV) modeling is using it to target the highest-valued customers or players. I have written many times about the importance of LTV and how to calculate it. One of the most powerful applications of LTV is online customer targeting.
As an article on MarketingProfs points out, LTV targeting starts with a deep understanding of your current customer base so you can develop high-LTV and low-LTV customer segments. Doing so will allow you to create a profile of the “personas” that will have the best retention, highest word of mouth and spend the most on your products.
High-LTV personas could be “women over 35 who spend most of their day at home.” By knowing the persona, you can create personalized messages to strategically target customers who match that profile, and reach them through a variety of channels.
Once you have built personas for your players or customers, there are four ways to leverage this understanding: Continue reading “Lifetime Value Part 16: Using lifetime value to target prospects”