Understanding a client’s lifetime value (LTV) is a critical aspect for any business that aims to establish and maintain long-term and profitable customer relationships. LTV represents a prediction of the net profit attributed to an entire future relationship with a specific client, including all products or services that the customer is expected to purchase, as well as the costs incurred for acquiring and servicing them.
By comprehending a client’s LTV, businesses can make informed decisions about how to allocate their resources toward acquisition and retention. For instance, a business may be willing to invest more funds in acquiring new customers if they are expected to have a high LTV. Similarly, a business may choose to invest more in customer service and retention efforts for customers with high LTVs, as they are considered more valuable to the company in the long run.
Furthermore, comprehending LTV can help businesses tailor their marketing and sales efforts. It enables the identification of customer segments that generate the most revenue, which allows the company to shift focus in terms of product development, promotions, and sales. What’s more, LTV can also be utilized to evaluate the effectiveness of these strategies over time. By comparing the actual LTV of a group of customers to the LTV that was predicted at the time of acquisition, a business can determine whether its marketing and sales efforts have resulted in the acquisition of high-value customers. If the actual LTV falls short of the predicted LTV, the company may need to re-evaluate its strategies and make necessary adjustments.
To discern the long-term performance data of clients, businesses turn to machine learning and AI-driven pLTV (predicted lifetime value) to project future actions and strengthen their user acquisition metric. This is where Voyantis comes in. It’s a predictive growth platform that empowers online businesses to achieve sustainable pLTV-based growth while overcoming privacy challenges and the ever-growing costs of acquisition.
Predictive Audiences for Acquisition and Retention
Voyantis’ AI technology predicts the future value and likelihood of every user, allowing businesses to create and target audiences more effectively with the goal of increasing profitability. By analyzing large amounts of data, the AI can provide valuable insights into customer behavior and predict which users are most likely to convert. This information can then be used to create targeted audiences that are more likely to generate revenue.
The technology also allows for real-time generation of audience seeds based on user-level intent and pLTV. This means that businesses can acquire more customers similar to their best ones, by identifying users with similar characteristics and behaviors. This feature enables businesses to scale their prospecting campaigns without compromising ROI.
The Predictive Audiences feature allows businesses to reduce the time from acquisition to realized value by focusing on the most valuable customers. By focusing retargeting efforts on customers with a high likelihood of converting and achieving high future value, businesses can improve performance and efficiency while avoiding wasting resources on customers unlikely to purchase.
Additionally, this technology utilizes both zero and first-party data to continuously forecast value and likelihood on a single-user level, allowing for personalized, intent-based email marketing to retain and maximize the value of existing customers. This can help businesses to build deeper, more meaningful relationships with their customers, leading to increased loyalty and ultimately higher revenue.
Conclusion
The hyper-digital era has transformed how businesses acquire customers of the highest value. With the advent of advanced technologies such as ML and AI, teams can now use advanced predictive AI solutions and insights from large amounts of data to significantly increase profitability by shifting to a focus on LTV for growth.
