Why Should Ecommerce Sellers Care About Clv

Customer experience is a top priority for businesses, especially now that most of our transactions are virtual.

For 2021, 86% of shoppers are willing to pay more for a superior customer experience, making it a key differentiator, over price and product value.[ * ]

If you already provide customer service, convenient payment options, great products, etc. What else can you do to improve the customer experience?

The answer is Customer Lifetime Value or CLV

Before e-commerce, not all database marketers and businesses understood CLV. And even as long as e-commerce started, CLV was still a fuzzy topic, with only 34% of marketers fully aware of its meaning and significance.

This article will help you understand CLV and how it plays a big role in enhancing customer experience.

CLV or Customer Lifetime Value is a predictive model that measures the expected revenue a business can earn from customers over the course of their business relationship.

The basic example is:

Every year on your father’s birthday, you send the same $80 cake. You’ve been doing this for the past 3 years. So now your lifetime value to the bakery is $240.

Foster Retention and Loyalty


Every business wants clients with high lifetime value because this means brand loyalty. They ensure steady returns and secure your business presence for years to come, and even decades to come. In fact, 61% of loyal customers would go the extra mile just to buy their favorite products (or brands) and services.[ * ]

For long-term revenue, CLV will help you track customer purchases and optimization. You’ll see and understand what each USA CFO customer needs at every step of the buying process.

Takeaway: Customer loyalty is the result of a positive customer experience. CLV helps you fully understand the customer journey by going deep into each customer and seeing where and why they left or stayed.

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