Integrated approach to addressing CLV includes methods of improving customer retention, increasing purchase frequency and improving personalization
CHICAGO — Oct. 9, 2019 — Today’s retailers and manufacturers are increasingly implementing new strategies to keep customers coming back. As competition for customer attention and spending intensifies and data that was once siloed is integrated into environments like the industry-leading IRI Liquid Data® platform, it is easier than ever to measure Customer Lifetime Value (CLV). IRI’s latest Point of View, “From Surviving to Thriving: Tools to Maximize Customer Lifetime Value,” demonstrates how an integrated approach to CLV can improve customer loyalty and accelerate growth, profitability and enterprise value.
“Maintaining and growing customer loyalty is more important today than it used to be, given increased competition and acquisition costs,” said Fernando Salido, executive for Shopper Analytics at IRI. “How retailers and brands respond will determine their success in retaining their highest-value customers and bringing in future high-value customers ― all while improving enterprise value. Businesses that want to maximize every customer’s CLV contribution need to understand the role promotions, programs, products, customer experiences and other levers play in improving lifetime value.”
To help brands and retailers maximize CLV, IRI has identified practical paths to growth, including:
- Promoting products or services with shorter purchase cycles, high repeat rates and relatively higher margins to improve CLV
- Personalizing customer offers to maximize retention and frequency, which drives greater CLV and enterprise value
- Cross-promoting products that increase profitability per customer
- Leveraging the laws of “customer physics” in your business’s favor, as customers will inevitably reward those that do
- Making business decisions that are accretive both to business profits in the near term and to customer lifetime value in the longer term, particularly from your most important customers
- Adding CLV measures to improve customer loyalty. Without CLV metrics, traditional segmentations may not reveal the right customer opportunities
“Customer Relationship Management (CRM) software is expected to double in size to $80 billion over the next five years,” said Salido. “It’s clear to IRI that businesses are determined to retain and keep customers in such a competitive market. Having a comprehensive understanding of your customers’ CLV is a crucial piece to effective CRM and can be the key to edging out competition.”
IRI Point of View: Delivering Growth Through High-Value Customers
About the Report
“From Surviving to Thriving: Tools to Maximize Customer Lifetime Value” is a free report available from IRI. To download the report, visit https://www.iriworldwide.com/en-US/Insights/Publications/Maximize-Customer-Lifetime-Value.
About the IRI Partner Ecosystem
IRI fundamentally believes that delivering differentiated growth for clients requires deep, highly integrated partnering with a variety of best-of-breed companies. As such, IRI works closely with a broad range of industry leaders across multiple industries and sectors to create innovative joint solutions, services and access to capabilities to help its clients more effectively collaborate and compete in their various markets and exceed their growth objectives. IRI is committed to its partnership philosophy and continues to actively enhance its open ecosystem of partners through alliances, joint ventures, acquisitions and affiliations. The IRI Partner Ecosystem includes such leading companies as 84.51°, Adobe, The Boston Consulting Group, Clavis Insight, comScore, Data Plus Math, Dynata, Edison, Experian, GfK, Gigwalk, Google, Ipsos, Jumpshot, Mastercard Advisors, MaxPoint, Ogury, Omnicom, One Click Retail, Oracle, Pinterest, Simulmedia, SPINS, Univision, Viant and others.
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC health care organizations, retailers, financial services and media companies grow their businesses. A confluence of major external events — a change in consumer buying habits, big data coming into its own, advanced analytics and personalized consumer activation — is leading to a seismic shift in drivers of success in all industries. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI is empowering the personalization revolution, helping to guide its more than 5,000 clients around the world in their quests to remain relentlessly relevant, capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth. For more information, visit www.iriworldwide.com.
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