Building A Stable Platform For Customer Lifetime Value Models

Having looked at important considerations in Customer Lifetime Value (CLV) model design, this second blog in our CLV series looks at the critical factors in founding a stable platform for your model. To successfully operationalise a CLV model, a comprehensive operating model is required, considering people and organisation, data and governance, and technology. These contextual factors are often overlooked in the build of a model and become the roadblock to the realisation of the benefit from even a robust model. We will look at each of these areas in turn.

1. People and organisation

CLV can realise benefits across a business but with each function having unique requirements, the identification of key stakeholders and their requirements can be challenging. Becoming a CLV-driven organisation requires clarity around how each function will use CLV to enhance or develop existing processes. Functions often require guidance on the possibilities CLV provides,