Customer lifetime value (CLTV) is the expected profit that a single customer brings to a company over the course of their lifetime. CLTV represents a shift in emphasis from quarterly or annual profits to the long-term relationships with customers.
Nowadays, the abundance of data and the advances in Machine Learning and big data applications reduce the need for top-down segmentation of customers. Smart customer clustering based on many commonalities help companies better address customer needs to provide the right experience and divide resources efficiently.
Any account management, customer success and support team has one key goal — to reduce and minimize churn. Churn prediction is the process of identifying segments or specific customers that are at risk of churning, i.e discontinuing their business, within a short amount of time in order to deal with the customer health issue as much in advance as possible.