Measuring Customer Lifetime Value Keeps Companies on Track for Success in the Digital Economy

SANTA CLARA, CA--(Marketwired - Nov 19, 2015) -

• Avaya and Frost & Sullivan release new research that shows the impact of Customer Lifetime Value on long-term profitability and growth
• Research shows high performing, strategic CLV companies make the contact center the focal point of delivering a seamless, omni-channel experience
• New Customer Lifetime Value calculator tool helps companies overcome the challenges of measurement and gain a more accurate picture

Avaya, a global leader in business communications software, systems and services, has released new research and calculator tool developed with industry analysts, Frost & Sullivan, that helps companies determine how they are executing against a top priority for digital transformation efforts: Improving Customer Engagement.¹ The research into Customer Lifetime Value (CLV) identifies qualities that separate high-performing companies from others, and how customer engagement can be influenced through a blend of business orientation, resource management and technology.

With investments in digital transformation initiatives outweighing overall IT spend in some industries,² it's critical that companies have a means of determining if the investments are having the intended effect on key objectives. Unilaterally, 80% of companies in any stage of digital transformation cite improving customer engagement as a priority.³ Measuring Customer Lifetime Value (CLV) can help companies stay on track for success since the research shows that companies tracking CLV significantly outperform others in terms of profitability and growth.

Customer Lifetime Value is the present value of all the future cash flows attributed to a customer relationship. It includes the projected amount of money the customer may spend and such items as the cost of new customer acquisition or savings from customer retention, the propensity of a customer to refer the company to others and the cost of their loyalty. Against digital transformation initiatives, measuring CLV helps companies see how see that all decisions and actions are tied together and encourages a long-term look at the customer relationship rather than short-term quarterly impacts.