5 phases of customer lifetime value (CLV)

Pasquale Schifino

Customer Lifetime Value (CLV) is one of the most important key figures for determining the long-term value of a customer for a company.

However, this value is not created overnight – it develops in several phases.

A deep understanding of these phases helps companies to adapt their strategies in order to increase CLV.

In this article, we take a look at the different phases of CLV, their importance and how companies can optimize them in a targeted manner.

🎯 The most important summarized:

Dividing the CLV into different phases makes it possible to systematically analyze the customer life cycle and address the individual phases in a targeted manner.

Each phase (customer acquisition, retention, development) requires individual marketing strategies in order to continuously increase the value of the customer.

By analyzing the individual phases, key influencing factors and value drivers can be identified that contribute significantly to increasing CLV.

Regularly reviewing and adapting strategies in the various CLV phases leads to improved customer loyalty and sustainably higher customer value.

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Table of contents

1. Phase: Acquisition phase

2. Phase: Onboarding phase

3. Phase: Growth phase

4. Phase: Win-back phase

5. The importance of the CLV phases

6. Conclusion

7. More about Customer Lifetime Value

Phase: Acquisition phase

Description: In this phase, companies acquire new customers. They invest in marketing and sales to convince potential buyers.
Objectives: Generate awareness, encourage the first purchase and create the basis for a long-term relationship.
Measures:
- Target group analysis for precise marketing.
  - Introductory offers or discounts for new customers.

Lead generation - the deal with your prospects

Phase: Onboarding phase

Description: After a customer has been acquired, the focus is on the introduction to products or services.
Objectives: Ensure satisfaction and build customer trust.
Measures:
- Personalized welcome campaigns.
- Support through tutorials, FAQs or direct customer service.

Phase: Growth phase

Description: In this phase, the customer begins to interact regularly with the company. Sales and loyalty increase.
Objectives: Increase sales per customer through repeat purchases, up-selling and cross-selling.
Measures:
- Loyalty programs or exclusive offers.
- Suggestions for complementary products or services.

Customer retention rate Customer retention

Phase: Win-back phase

Description: Customers who are inactive or have churned are to be reactivated.
Objectives: To renew the relationship and win the customer back.
Measures:
- Individual win-back campaigns with targeted incentives.
- Analysis of the reasons for churn and corresponding adjustments.

The importance of the CLV phases

Each phase has its own dynamics and requires specific strategies.

A successful company understands that:

Not all customers are the same: The focus should be on customers with high potential for long-term value.
Long-term relationships are crucial: The value of a customer increases with the length of the relationship.
Strategic alignment is necessary: Every phase offers opportunities to increase CLV.

Learn more about the Customer Lifetime Value

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Conclusion

Customer lifetime value is not a static value, but the result of a continuous process that spans several phases.

From first contact to win-back, each phase is crucial to maximizing the long-term value of a customer.

Companies that understand and optimize the CLV phases not only benefit from higher sales, but also from stronger customer loyalty and sustainable business success.

A strategic approach that considers the customer journey across all phases is the key to successful CLV optimization.

More about Customer Lifetime Value

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