{"id":9004111223079860,"date":"2021-11-30T14:04:20","date_gmt":"2021-11-30T18:04:20","guid":{"rendered":"https:\/\/www.pragmaticinstitute.com\/?p=9004111222959969"},"modified":"2022-02-22T16:32:26","modified_gmt":"2022-02-22T20:32:26","slug":"using-ai-to-maximize-customer-lifetime-value","status":"publish","type":"resources","link":"https:\/\/www.pragmaticinstitute.com\/resources\/articles\/data\/using-ai-to-maximize-customer-lifetime-value\/","title":{"rendered":"Using AI to Maximize Customer Lifetime Value"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">It costs five times as much to attract a new customer than to keep an existing one.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is a standard marketing mantra. While the actual multiple varies based on the research approach and industry, it\u2019s undisputed that the cost of acquiring a new customer is significantly higher than the cost of retention.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We know retention directly affects the bottom line. Increasing customer retention rates by 5% increases profits by 25% to 95%, according to <\/span><a href=\"https:\/\/media.bain.com\/Images\/BB_Prescription_cutting_costs.pdf\"><span style=\"font-weight: 400;\">research by Frederick Reichheld<\/span><\/a><span style=\"font-weight: 400;\"> of Bain &amp; Company<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, most companies don\u2019t realize acquisition and retention are two small components of overall Customer Lifetime Value (CLV), which has a significant impact on the top and bottom line for the company. According to <\/span><a href=\"https:\/\/piwik.pro\/blog\/customer-lifetime-value-important-for-your-business\/\"><span style=\"font-weight: 400;\">statistics<\/span><\/a><span style=\"font-weight: 400;\"> from Gartner, <\/span><span style=\"font-weight: 400;\">80% of your company\u2019s future revenue will come from just 20% of your existing customers<\/span><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">Clearly, not all customers are equal, and understanding CLV is critical to success.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At any point in time, your customers are at different stages of their life cycle. (<\/span><a href=\"https:\/\/blog.recapture.io\/customer-lifetime-value\/\"><span style=\"font-weight: 400;\">Recapture<\/span><\/a><span style=\"font-weight: 400;\"> provides a helpful visual showing how CLV affects every area of your business.) As customers progress through their life cycles, you can get better insights on their CLV. Identifying each customer\u2019s stage and their CLV potential will ensure you prioritize and invest in the right ones.\u00a0<\/span><\/p>\n<blockquote><p>&#8220;80% of your company\u2019s future revenue will come from just 20% of your existing customers. Clearly, not all customers are equal.&#8221;<\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Analyzing customer onboarding activities and purchase patterns uncovers insights that could help you deliver a higher customer satisfaction and experience while also extracting higher CLV. The drivers of CLV likely vary significantly by industry, company and region.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consider these questions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How do you determine customers with high CLV?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How do you analyze data across the customer life cycle to get a comprehensive and quantitative view of the customer?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How do you identify insights critical to improving both customer experience and CLV?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How do you identify which prospects are most likely to convert to a client?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How does customer onboarding and engagement relate to retention?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How do you leverage customer engagement and purchase patterns to upsell and cross-sell?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How do you determine which customers are at risk to churn so you take corrective action?<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Artificial Intelligence (AI) can help you sift through large amounts of data and <a href=\"https:\/\/www.pragmaticinstitute.com\/resources\/articles\/data\/qa-a-data-model-to-drive-business-outcomes-through-critical-insights\/\" target=\"_blank\" rel=\"noopener\">uncover the critical insights<\/a> so you can identify the high-potential customers early and take the right action at the right time to deliver value.<\/span><\/p>\n<h3><strong>Customer Life Cycle<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Let\u2019s break down the four stages of the customer life cycle:<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Acquisition:<\/strong><span style=\"font-weight: 400;\"> Driving customer acquisition across various sales and marketing activities is expensive and challenging. Understanding what influences and triggers the decision to buy is crucial, and identifying which prospects are likely to convert allows you to focus resources accordingly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Onboarding:<\/strong><span style=\"font-weight: 400;\"> Effective activation ensures customers secure value from offerings over time, as poor onboarding can lead to future retention challenges.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Engagement:<\/strong><span style=\"font-weight: 400;\"> Identifying and capitalizing on the customers with the highest lifetime value is critical. Offering customers the right product or service at the right time can dramatically boost cross-sell and upsell performance while also improving their experience.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Retention:<\/strong><span style=\"font-weight: 400;\"> Identifying high-risk churn early in the customer life cycle can help improve retention. Satisfied and loyal customers are a competitive differentiator, leading to referrals and influencer sales.\u00a0<\/span><\/li>\n<\/ol>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-9004111222960007 \" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/customer-lifecycle-stages-acquisition-onboarding-engagement-retention-harish-krishnamurthy-white-paper-1024x697.png\" alt=\"graphic showing the customer lifecycle stages - acquisition onboarding engagement retention\" width=\"559\" height=\"381\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/customer-lifecycle-stages-acquisition-onboarding-engagement-retention-harish-krishnamurthy-white-paper-1024x697.png 1024w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/customer-lifecycle-stages-acquisition-onboarding-engagement-retention-harish-krishnamurthy-white-paper-300x204.png 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/customer-lifecycle-stages-acquisition-onboarding-engagement-retention-harish-krishnamurthy-white-paper-768x522.png 768w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/customer-lifecycle-stages-acquisition-onboarding-engagement-retention-harish-krishnamurthy-white-paper-600x408.png 600w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/customer-lifecycle-stages-acquisition-onboarding-engagement-retention-harish-krishnamurthy-white-paper.png 1495w\" sizes=\"(max-width: 559px) 100vw, 559px\" \/><\/p>\n<p>Now, let\u2019s go a bit deeper into each stage and see how AI can help uncover insights.<\/p>\n<h3><b>Acquisition<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There are numerous data points available within the company sales and marketing processes and CRM systems as prospects navigate the decision process. However, you shouldn\u2019t limit the data you analyze to traditional CRM systems; there is valuable data in phone systems, chat, website touch points, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can often augment with external data sources, including social media posts, purchased commercial data, geographical and profile information (see sample metrics in the figure).<\/span><\/p>\n<p><img decoding=\"async\" class=\"wp-image-9004111222960036 size-full aligncenter\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/Customer-Acquisition-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata.jpg\" alt=\"Customer Acquisition Stage sample model outputs and data points \" width=\"477\" height=\"572\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Acquisition-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata.jpg 477w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Acquisition-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata-250x300.jpg 250w\" sizes=\"(max-width: 477px) 100vw, 477px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Predictive models can analyze traditional and non-traditional data, past conversion performance, profiles of leads and converted clients, along with external data to provide insight to which prospects have \u201chigher propensity to buy.\u201d\u00a0 Models can also provide early insights on CLV (although with limited data) and segment-level insights.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Armed with these insights, you can then focus marketing investments on relevant segments, differentiate and customize marketing tactics and channel execution at a segment level, and also customize by individual prospects.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Align sales and marketing resources to prioritize prospects with a higher likelihood to buy. You might have different approaches for prospects based on their odds of conversion. For example, align broad marketing tactics focused on low propensity to buy prospects and leverage expensive sales resources to focus on high propensity to buy prospects.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-9004111222962236\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/Customer-Acquisition-Stage-case-study-harish-krishnamurthy-sciata-1024x355.jpg\" alt=\"Customer Acquisition Stage case study\" width=\"841\" height=\"291\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Acquisition-Stage-case-study-harish-krishnamurthy-sciata-1024x355.jpg 1024w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Acquisition-Stage-case-study-harish-krishnamurthy-sciata-300x104.jpg 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Acquisition-Stage-case-study-harish-krishnamurthy-sciata-768x266.jpg 768w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Acquisition-Stage-case-study-harish-krishnamurthy-sciata-600x208.jpg 600w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Acquisition-Stage-case-study-harish-krishnamurthy-sciata.jpg 1200w\" sizes=\"(max-width: 841px) 100vw, 841px\" \/><\/p>\n<h3><b>Onboarding<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Customer onboarding is one of the most important stages, with long-term engagement and retention impact. <\/span><span style=\"font-weight: 400;\">How you treat a customer immediately after the sale is finalized significantly affects their loyalty. Onboarding activities can provide deep insights into customer lifetime value potential and even future churn risk.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are all valuable data points (see sample metrics in the figure): a<\/span><span style=\"font-weight: 400;\">ttendance; t<\/span><span style=\"font-weight: 400;\">raining completion; t<\/span><span style=\"font-weight: 400;\">ool adoption; t<\/span><span style=\"font-weight: 400;\">he frequency, duration and content of interactions with the company support teams; and w<\/span><span style=\"font-weight: 400;\">ebsite interactions during onboarding.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9004111222960048 aligncenter\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/Customer-Onboarding-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata.jpg\" alt=\"Customer Onboarding Stage sample model outputs and data points\" width=\"741\" height=\"442\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Onboarding-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata.jpg 741w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Onboarding-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata-300x179.jpg 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Onboarding-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata-600x358.jpg 600w\" sizes=\"(max-width: 741px) 100vw, 741px\" \/><\/p>\n<p>Predictive analytics models can analyze customer segment and profile data, historical onboarding patterns, downstream engagement and retention performance. This will help you predict likely outcomes and customer lifetime value based on the traction in the initial customer onboarding.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9004111222962255\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/Customer-life-cycle-onboarding-life-stage-case-study-by-harish-krishnamurthy-sciata-1024x333.jpg\" alt=\"Customer life cycle onboarding life stage case study by harish krishnamurthy sciata\" width=\"1024\" height=\"333\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-life-cycle-onboarding-life-stage-case-study-by-harish-krishnamurthy-sciata-1024x333.jpg 1024w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-life-cycle-onboarding-life-stage-case-study-by-harish-krishnamurthy-sciata-300x98.jpg 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-life-cycle-onboarding-life-stage-case-study-by-harish-krishnamurthy-sciata-768x250.jpg 768w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-life-cycle-onboarding-life-stage-case-study-by-harish-krishnamurthy-sciata-600x195.jpg 600w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-life-cycle-onboarding-life-stage-case-study-by-harish-krishnamurthy-sciata.jpg 1435w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h3><b>Engagement<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This stage in the customer life cycle provides an opportunity to deepen relationships, deliver value and build loyalty. Identifying and capitalizing on which customers have the highest lifetime value can position your organization for success. <\/span><span style=\"font-weight: 400;\">Choosing the right offering and timing for cross-sell\/upsell is critical to optimizing ROI from sales and marketing activities. Understanding customers\u2019 usage patterns and sentiment through their engagement will provide insights you can leverage to improve customer satisfaction while positively impacting sales and reducing churn risk.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Analytics models can analyze vast amounts of data from disparate sources such as customer success conversations, product usage patterns, account transactions and customer surveys to further improve CLV predictions. You can then invest in customers with higher CLV early in the process.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-9004111222962277\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/Customer-engagement-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata.jpg\" alt=\"Customer engagement Stage sample model outputs and data points - harish krishnamurthy president of sciata\" width=\"843\" height=\"391\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata.jpg 843w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata-300x139.jpg 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata-768x356.jpg 768w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata-600x278.jpg 600w\" sizes=\"(max-width: 843px) 100vw, 843px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Using the insights from these models, identify high propensity-to-upsell\/cross-sell customers, determine which products they are likely to buy when, and customize your sales and marketing activities to target the right customers with the right offerings at the right time.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9004111222962326\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/Customer-engagement-Stage-case-study-harish-krishnamurthy-sciata-1024x353.jpg\" alt=\"Customer engagement Stage case study harish krishnamurthy sciata\" width=\"1024\" height=\"353\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-case-study-harish-krishnamurthy-sciata-1024x353.jpg 1024w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-case-study-harish-krishnamurthy-sciata-300x103.jpg 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-case-study-harish-krishnamurthy-sciata-768x265.jpg 768w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-case-study-harish-krishnamurthy-sciata-600x207.jpg 600w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-engagement-Stage-case-study-harish-krishnamurthy-sciata.jpg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h3><b>Retention\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Retention is the culmination of performance across all previous stages. Identifying customers at high risk for churn early in the customer life cycle enables you to take corrective actions to retain them.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-9004111222962573\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/Customer-retention-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata.jpg\" alt=\"Customer retention Stage sample model outputs and data points\" width=\"685\" height=\"302\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-retention-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata.jpg 685w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-retention-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata-300x132.jpg 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-retention-Stage-sample-model-outputs-and-data-points-harish-krishnamurthy-president-of-sciata-600x265.jpg 600w\" sizes=\"(max-width: 685px) 100vw, 685px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Analytics models can sift through large amounts of data to identify these customers. CLV predictors enable you to prioritize the customers to target. You might also identify customers who you\u00a0<i>don\u2019t\u00a0<\/i>want to retain.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9004111222962619\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/Customer-Retention-Stage-case-study-harish-krishnamurthy-sciata-1024x301.jpg\" alt=\"Customer Retention Stage case study\" width=\"1024\" height=\"301\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Retention-Stage-case-study-harish-krishnamurthy-sciata-1024x301.jpg 1024w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Retention-Stage-case-study-harish-krishnamurthy-sciata-300x88.jpg 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Retention-Stage-case-study-harish-krishnamurthy-sciata-768x226.jpg 768w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Retention-Stage-case-study-harish-krishnamurthy-sciata-600x176.jpg 600w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/Customer-Retention-Stage-case-study-harish-krishnamurthy-sciata.jpg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Concepts like CLV and customer life cycle are not new, nor is AI. What <\/span><i><span style=\"font-weight: 400;\">is <\/span><\/i><span style=\"font-weight: 400;\">new is the massive and previously unimaginable quantity of available data across different sources. With the current computational power, <\/span><span style=\"font-weight: 400;\">technologies such as AI, deep learning, machine learning, and predictive analytics can analyze significant amounts of data, identify patterns and extract insights in real time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the right insights, you can now identify customers with high CLV and implement targeted actions across your business to deliver more value to your customers across the customer life cycle.<\/span><\/p>\n<p style=\"text-align: center;\">* * *<\/p>\n<p><em><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-9004111222960021 alignleft\" src=\"https:\/\/www.pragmaticinstitute.com\/wp-content\/uploads\/2021\/11\/sciata-logo-300x72.jpg\" alt=\"sciata logo\" width=\"258\" height=\"62\" srcset=\"https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/sciata-logo-300x72.jpg 300w, https:\/\/www.pragmaticinstitute.com\/resources\/wp-content\/uploads\/sites\/6\/2021\/11\/sciata-logo.jpg 557w\" sizes=\"(max-width: 258px) 100vw, 258px\" \/>This is the third white paper in <a href=\"https:\/\/pragmaticinstitute.com\/\" target=\"_blank\" rel=\"noopener\">Pragmatic Institute\u2019<\/a>s series by Sciata President\u00a0<a href=\"https:\/\/www.linkedin.com\/in\/harishk-sciata\/\" target=\"_blank\" rel=\"noopener\">Harish Krishnamurthy<\/a> on ensuring ROI from artificial intelligence, transforming insights into action, and driving a cultural change in how your organization leverages data. Read the previous pieces: 1) <a href=\"https:\/\/www.pragmaticinstitute.com\/resources\/articles\/data\/making-the-leap-from-ai-investments-to-business-results\/\" target=\"_blank\" rel=\"noopener\">\u201cMaking the Leap from AI Investments to Business Results,\u201d<\/a>\u00a0 2) <a href=\"https:\/\/www.pragmaticinstitute.com\/resources\/articles\/data\/aligning-it-and-business-strategy-for-project-success\/\" target=\"_blank\" rel=\"noopener\">&#8220;Aligning IT and Business Strategy for Project Success,&#8221;<\/a> and the subsequent ones, 4) <a href=\"https:\/\/www.pragmaticinstitute.com\/resources\/articles\/data\/designing-ai-models-to-extract-insights\/\">&#8220;Designing AI Models to Extract Insights,&#8221;<\/a> 5) <a href=\"https:\/\/www.pragmaticinstitute.com\/resources\/articles\/data\/transforming-insights-into-actions-and-business-results\/\">&#8220;Transforming AI Insights into Actions.&#8221;<\/a><\/em><\/p>\n<p><em><strong><a href=\"https:\/\/www.pragmaticinstitute.com\/data\/private-training\">Learn how Pragmatic Institute can\u00a0train your data team<\/a>\u00a0to deliver critical insights that power business strategy.<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>80% of your company\u2019s future revenue will come from just 20% of your existing customers. How can you get actionable insights across the customer life cycle to deliver value to your customer and your business? Harish Krishnamurthy explains how in his latest white paper for Pragmatic Data.<\/p>\n","protected":false},"author":9004111222412288,"featured_media":9004111222959987,"menu_order":0,"template":"","categories":[9004111222509931],"tags":[],"content-series":[],"content-format":[9004111223037711],"framework-box":[185],"vertical":[132],"ppma_author":[9004111222875212],"class_list":["post-9004111223079860","resources","type-resources","status-publish","has-post-thumbnail","hentry","category-data-science","content-format-article","framework-box-fw-revenue-retention","vertical-data","author-harish-krishnamurthy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Using AI to Maximize Customer Lifetime Value | Pragmatic Institute<\/title>\n<meta name=\"description\" content=\"80% of your company\u2019s revenue comes from 20% of customers. 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