How Customer Profiling & Segmentation helps increase Customer Lifetime Value


Customer Lifetime Value is a metric that’s fairly untouched in the business world mainly because companies are unsure about how exactly it brings about growth in revenue over time. But more than anything, calculating customer lifetime value brings about a valuable change in the way organisations function. It’s a golden opportunity, a paving pathway for companies to get ahead of their competition.

Customer Lifetime Value solves the biggest challenge for any business, be it a startup or one working on a global scale; constant innovation in a world where technology is drawing out solutions never thought of before.

Once you’ve successfully managed to bring in a steady flow of customers for your business, your job doesn’t end there. You need a sharp insight into your customer base to identify your most valuable buyers by observing how they behave.

Roping in new customers to your business is a daunting task that most companies struggle with. On the other hand, retaining and engaging with existing customers takes far less effort and resources. Customer Lifetime Value helps businesses do exactly that; analyse their existing customer base to find out who, when, and how will bring the most revenue, along with calculating how much each existing customer is worth.

This metric will make a huge difference to any enterprise since equipped with this knowledge, you get the ability to take the wheel behind customer engagement strategies; honing, improvising, and doubling engagement on high-valued customers.

Engagement strategies that customer lifetime value can leverage includes the entire customer service process that can be personalised to make high-paying customers feel valued and stick with your business for a lifetime. By prioritising and offering customised service to customers with higher worth, you are not only retaining them longer but also increase customer spend. Customer Lifetime Value also drives marketing strategies in order to improve and increase engagement on customers with higher worth.

With respect to increasing customer lifetime value, there are several solutions that work in tandem with customer worth to drive accurate engagement strategies leading to better conversions.

1. Customer Profiling:

Customer Profiling is a solution that enables you to store customer profiles which tell the story of every customer, from the inside out. With a panoramic view as this of your customers, you can get the right message across to them that matches their preferences. It’s easier to offer customised services when you have a 360-degree view of high paying customers through a profiling system.

  • Labelling VIP customers:

To get maximum revenue from customers based on their spending potential, you need to be able to distinguish between them with a solution that lets you label high paying customers like VIP. With this classification, you can evaluate conversions every time by offering dynamic pricing to special customers.

2. Customer Segmentation:

In customer segmentation, your customer base is divided into chunks depending on their status. This solution lets you take on a dedicated approach for each segment.

  • Dedicated workflows:

Dedicated workflows help target customers with higher potential in every step along your marketing and engagement strategies. You can set up targeting sequences for each segment like email, and ad campaigns.

Building Customer Loyalty:

Customer Profiling & Segmentation gives you a better view on how to improve the efficiency of your customer service and operations for customers with higher lifetime value. You can avoid what brings about customer dissatisfaction and introduce loyalty programs to reduce churn and retain high paying customers for long periods of time.


Calculating Customer Lifetime Value firstly requires a 360-degree view on each customer, if you want to know each customer’s worth. Without a profiling system, it’s very hard to calculate customer spend by manually searching for this information. Customer Profiling & Segmentation is a solution that aids businesses to know the worth of each customer, thus increasing their lifetime value.

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