Customer management RFM model that is inseparable from LTV

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Why LTV/CLV Matters: 3 Key Figures
The marketing company Invesp mentioned the following 3 key data in a research report on new customer acquisition and old customer retention :

(1) For new products, existing customers are 50% more willing to try new products than new customers, and are willing to spend 31% more on new products.
(2) The cost of acquiring new customers is more than 5 times the cost of retaining old customers.
(3) Retaining 5% more old customers can increase overall profits by 25%-95%.


It can be seen from this that it will be a better resource allocation model for brands to invest resources in customer retention and in-depth and long-term relationship management. Xue Jin, CEO of the marketing russia whatsapp phone number technology company Crescendo Labs, also made the following trend observations at the 2022 Marketing Growth Hacker Annual Conference:

"If companies want to survive today, they must think about how to acquire customers at a lower cost or how to increase customer lifetime value (LTV) ."

Among them, the latter is the practice that more brands pay attention to.

2022 Marketing Growth Hacker Annual Conference: CEO of Crescendo Labs delivers highlights
Now that third-party data has withdrawn from the market and advertising dividends are rapidly disappearing, acquiring customers at a lower cost has become increasingly competitive and difficult. Improving customer lifetime value may be a more pragmatic and easier path. This is why the concepts of old customer retention and customer value have become so popular recently. However, for marketers, where should we start to improve customer lifetime value? What are the popular tools on the market that can be used?