Customer Lifetime Value
When you join an affiliate program there is one factor that will be the most prevalent in your relationship within the partnership – Player Lifetime Value (LTV). The importance of understanding the lifetime value of a player or customer indicates the amount of revenue which can be earned from a player to the casino. The customer lifetime value is the sum of the gross profit from all historic purchases for an individual player.
Ever-higher Player LTV is really the bedrock of the marketing efforts behind many tools offered by affiliate programmes. Ways of enhancing LTV vary. The business needs to find ways to maximize the chances that a player will continue to return to play. The customer lifetime can also be measured by the ratio of chances that a player will return again and again. The customer lifetime value (CLV or often CLTV), and lifetime customer value (LCV), or life-time value (LTV) predicts the net profit associated with the potential player.
The need to calculate what players are potentially worth is very attractive and important for affiliate programs. CLV demonstrates the quantitative play and long-term scale to customer acquisition and relationships. Instead of reviewing how to acquire players in the cheapest way possible you can also think about ways to optimize their acquisition. By regulating segmentation, retention, and monetization, you can setup your metrics to ensure future profitability.
Customer lifetime value metrics have to be measured when new features and innovation are added to the website as well. investment increases customer health and wealth. Successful innovations make customers more valuable. All of the large companies, like Google and Amazon understand that the more value they bring their end user, the longer and stronger the CLV will be for their businesses.