Lifetime Value (LTV) is a critical metric for companies looking to acquire and retain customers. LTV helps companies determine the worth of a client over the course of their relationship with the business. By understanding LTV, organizations can make informed decisions about the acquisition and retention of customers, ultimately leading to growth, such as the investment growth seen in Growth Stack Inc.
Unfortunately, many marketing and growth teams struggle with LTV due to the lack of research and development (R&D) resources. This leads to difficulty in analyzing and utilizing company-owned data to make verified, time-sensitive decisions. Without understanding a customer’s LTV, companies are unable to prioritize customer retention strategies, resulting in high churn rates. This can be damaging to the growth and stability of a business, as retaining existing customers is often more cost-effective than acquiring new ones. What’s more, it can eventually result in inefficient marketing spending, missed upsell opportunities, and inaccurate customer segmentation
This is where artificial intelligence comes in.
By harnessing the power of AI, companies gain the ability to process massive amounts of information and gain valuable insights. These insights are grounded in hard data, rather than being based on assumptions or gut instincts – free from subjectivity or biases. By using these insights, businesses can make highly intelligent decisions and achieve better outcomes. Additionally, machine learning algorithms can continue to learn and improve over time, leading to even more accurate insights in the future.
Combating Naive Assumptions through AI
The buzz behind AI’s role in streamlining and optimizing custom acquisition and retention is warranted. To keep afloat in today’s competitive business arena, organizations invest in advanced technologies and modern developments to gain an advantage. Leaders from a myriad of industries lean onto predictive analytics to unlock the goldmine that they’re sitting on. Solutions like Voyantis, a growth platform that leverages AI to assist companies to achieve sustainable LTV-based growth, are spearheading the transition from spreadsheets to data-based decision-making. Its creators, Ido Wiesenberg and Eran Friendinger, aim to transform how online businesses acquire and retain customers of the highest value via superior predictive AI solutions.
According to research, high profile organizations that have long been using AI and predictive analytics to support their operations include Microsoft, Hewlett Packard, and Eli Lilly – all of which have maintained steadfast ranks as some of the most profitable companies on a global scale. By leveraging AI and predictive analytics, these companies have been able to gain insights into their clients, products, and processes, resulting in a solid network of bulletproof, long-term, and loyal customer relationships.
With the use of AI in LTV, companies are able to gain a deeper understanding of their customers’ behavior patterns. This allows them to tailor their marketing efforts and focus on specific individuals who are more likely to make repeat purchases. By utilizing AI-powered data analysis, an e-commerce business can identify purchasing habits, preferences, and tendencies of their customers, and use this information to create targeted and personalized promotions. As a result, the company can improve customer retention and enhance their overall lifetime value. Additionally, AI can also help in predicting future customer behavior, further refining their targeting efforts and maximizing the LTV.
AI has quickly become synonymous with business profitability. As more breakthroughs disrupt traditional processes regularly, every progressive leader knows that investing in these technologies is key to thriving. By empowering marketing and growth teams with cutting-edge technology, the road toward growth is no longer a grueling battlefield.