Customer lifetime value (CLV) plays a key role in customer relationship management and has been implemented in variety of sectors. The main goal of customer lifetime value is to specify the importance level of each customer for a company.

In simple terms, customer lifecycle value is the projected value a customer generates over the entire lifetime of their interaction with the brand. Focusing on CLV can help a company determine optimize the marketing spends, allowing it to focus on more profitable customers.

• Observe various individual-level buying patterns from the past – find the various customer stories in the data set.
• Understand which patterns correspond with valuable customers and which patterns correspond with customers who are leaving for good.
• As new customers join, match them to these patterns accordingly.