Why is CLV important for companies and what are some of the key benefits?

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In this activity, you are required to investigate an example of customer lifetime value (CLV) and the benefits it provides.

Initially research the benefits of CLV for companies, collate your findings, and answer the following:
Imagine you are explaining CLV to the public, what is customer lifetime value in your own words?
Why is CLV important for companies and what are some of the key benefits?
What do you think are the limitations of customer lifetime value?
Aside from customers’ purchases, explain what other value could companies gain from customers.
Using any available resources to conduct your research, identify a company and how it has used CLV to improve it’s business and analyse how they have benefitted from it.
Alternatively identify a company that has failed to utilize CLV and suggest how they might implement it better.






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