The cost of acquiring customer base is very high in the first 12-24 months of business incorporation because we do not know the  characteristics of our target group .This is why Cost to Income Ratio (CIR) is high. To lower CIR we need to collect transactional data, website data and logistics data. Having the data for 8-12 months we can understand the characteristics of existing customers by building up a model and selecting significant variables having an impact. Running a classification algorithm would fine-tune our target group. Customer Lifetime Value (CLV) depicts the quality of customers. Customers with higher CLV would help business to grow.Read more at: http://analyticsindiamag.com/optimize-digital-marketing-spends-drives-traffic-ecommerce-site/