Customer Value Maximization is a good method used to attract customers to increase transactions and keep active customers of a business for a long duration. The primary factors which contribute to the total revenues that a customer will generate are time, purchase frequency and monetary value of purchases. Maximizing the value of the customer to the business implies maximizing time × purchase frequency × monetary value equation. The pillars of every value maximization strategy are:
1. Customer segmentation
2. Tracking customers over time.
3. Accurate prediction of future customer behaviour.
4. It should be based on the use of advanced calculations to determine the Customer lifetime value (LTV).
5. Marketing action optimization.
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