Precisely because the Customer Lifetime Value starts from a sort of estimate of purchasing behavior, there are various formulas and calculation models in the literature.
The simplest model includes the following formula: Customer Lifetime Value = average value of a purchase * number of times the customer purchases each year * average duration of the relationship with the customer (in years).
As can be easily understood from the formula, in this case, the definition of the Customer Lifetime Value is mainly contributed by “historical” data relating to purchasing behaviors observed over time.
In this regard, the approach proposed by Rusty Warner, researcher and analyst at Forrester Research, is interesting. According to him, Customer Lifetime Value should be overcome and rethought as the result of a continuous interaction between brand and customer , where value is built and amplified through personalized interaction methods , made possible thanks to in-depth knowledge of the customer and real-time updating of the profile.
Real-Time Interaction Management, beyond Customer Lifetime Value
real time interaction management 1
Thus, the Real-Time Interaction Management (RTIM) model was born from the approach proposed by Rusty Warner, which, as can be easily understood from the name, makes list of algeria consumer email real-time interactions with customers, predictive modeling and machine learning the foundations on which to build personalized and valuable customer experiences with an omnichannel perspective.
Formally defined as “ enterprise marketing technology that delivers contextually relevant experiences, value, and utility at the appropriate moment in the customer life cycle via preferred customer touchpoints”, Real-Time Interaction Management is based on key aspects such as:
user recognition from an omnichannel and cross-site perspective (read identity resolution );
the context , that is, everything concerning the customer, from historicized data to information collected in real time;
experience , or business analysis and strategies essential for defining the activities needed to engage the user in the subsequent steps ;
orchestration , or the activation of the various personalization activities
in the most relevant touchpoints both online and offline;
optimization , reporting and insights to improve and optimize different activities and improve performance.
As can be easily understood, in a context of Real-Time Interaction Management, the collection and centralized management of data play a crucial role. In fact, it is thanks to the possibility of having updated and real-time unified customer views that advanced profiling and segmentation activities are put into action , first, and strategies aimed at creating personalized and valuable customer experiences, then.
