Today's customers and their interactions with others are hyper-connected, so when measuring real customer value, marketing organizations need to start focusing on the digital and social potential of their customers. They need to think about digital interaction journeys, and that means thinking just beyond the transactional customer lifetime value — also thinking about customer engagement value, customer influencer value, customer reference value, and most importantly customer digital interaction values.
When all combined, we call it customer digital lifetime value.
The sophistication in computing digital customer lifetime value will require several things from the organizations. First, what is their digital strategy? Next, what is the availability of their customer data and the data outside from their own organization about their customers? And most importantly, their analytics and insight firepower within the organizations?
Organizations need to start building customer-centric analytics teams within their organization and their marketing functions, and really need to adopt this holistic approach of building and measuring the customer lifetime value.
You see, when we have moved beyond proxies to people-based marketing in this digital era, knowing the digital customer lifetime value is the new competitive advantage, and you have to tap into it.
To learn more, read our recent white paper Measuring Long Term Customer Value in the Digital Era.