Customer Lifetime Value (LTV) Modeling
Focusing only on the first sale is a mistake. A customer who buys once and disappears is worth much less than one who stays for years. If you don't know the total revenue a single client generates over their entire relationship with you, it is impossible to know how much you should spend to acquire them.
I help you model the LTV so you can see the real value of your customer base.
The Work:
- Revenue Per User (ARPU): We calculate the average amount a customer spends with you over a specific period. This establishes your baseline income per head.
- Retention & Churn Analysis: We look at how long customers typically stay and why they leave. This identifies the "churn rate" - the speed at which you are losing clients which directly impacts your company's valuation.
- Predictive Modeling: Based on historical behavior, I project what a new customer is likely to spend over the next 12 to 24 months.
The goal is to move from "chasing the next sale" to "building a portfolio of high-value clients." This data allows you to focus your energy on the segments that bring in the most revenue over time, rather than just the easiest ones to close.
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