ügyfélértékre

ügyfélértékre translates from Hungarian to customer lifetime value. It is a key metric used in business to predict the net profit attributed to the entire future relationship with a customer. Essentially, it represents the total worth of a customer to a company over the duration of their business relationship.

Calculating customer lifetime value involves estimating the average purchase value, the frequency of purchases, and the expected lifespan of a customer. It also takes into account the profit margins associated with each transaction. A higher customer lifetime value indicates that a company is effectively retaining its customers and generating significant revenue from them.

Businesses use customer lifetime value to make strategic decisions. It helps in determining how much a company can afford to spend on acquiring new customers and on retaining existing ones. A strong understanding of customer lifetime value can guide marketing efforts, customer service strategies, and product development to maximize profitability. It shifts the focus from short-term sales to long-term customer relationships and profitability. By understanding which customer segments have the highest lifetime value, companies can tailor their offerings and marketing messages more effectively. This metric is a cornerstone of customer-centric business models.