LONDON: Marketers in the UK are typically missing out on revenue and delivering an improved customer experience by not measuring the lifetime value of their customers, a new report has revealed.
According to market research firm Criteo, 81% of UK marketers have seen sales increase as a result of measuring customer lifetime value (CLV), while 79% of those that do have also been able to action more timely marketing.
Furthermore, of the marketers planning on implementing CLV, 68% expect to see increases in retention, while more than half (56%) believe it would enhance long-term brand loyalty.
Yet despite CLV’s impact on sales, customer loyalty and speed to market, three-quarters (76%) of UK organisations are unable to measure CLV effectively, Criteo said.
The findings are part of a new study into the views of 100 marketers on measuring customer lifetime value. Coupled with a survey of 2,000 UK consumers, the report also explores how brands and retailers can better meet evolving customer expectations.
The research found that only a quarter (24%) of UK organisations monitor CLV effectively, yet the great majority surveyed (69%) recognise that improvements could be made, while 72% believe better data use is essential to CLV success in 2018.
Commenting on the results, John Gillan, MD for UK and Northern Europe at Criteo, said: “[The] findings confirm the central role information has to play in helping brands and retailers develop a clear, long term view of their customer – something which is boosting sales and improving the customer experience.
“Given these challenges, marketers should be considering better data collaboration in a bid to accelerate their ability to develop a complete, holistic view of their customer-base.
“Only by doing this can marketers start to think beyond short-term, transactional gains and look towards maximising the lifetime value of their existing customers.”
Sourced from Criteo; additional reporting by WARC staff