Ramgopal Prajapat:

Learnings and Views

Applications of CLTV for ECommerce

By: Ram on Jun 12, 2022

One of the fundamental applications of AI is to increase value for Customers and Organizations. In this series, we will explore CLTV and its applications and also how AI can play a pivotal approach in measuring and managing value for customers and organisations. First, we will focus for ecommerce scenarios to make it specific and relevant. 

CLTV and its Applications for Retail and ECommerce

CLTV is one strategic metric to measure, track and grow the value of existing customers and assess effectiveness of all the acquisition and engagement initiatives.

At a high level, the CLTV measurement will be pivotal in customer acquisition, engagement/retention, and servicing strategies. Below are some of the applications and actions that can be driven by the level CLTV.


  • Campaign/Platform prioritization
  • Investments and ROI Prioritizations e.g., scale till it bring required level of CLTV (e.g., 5X)

Engagement & Retention

  • Designing Offer constructs
  • Retargeting and Retention campaign investments


  • Refund decisions
  • Additional privileges and promotions
  • Enhanced delivery experience – assigning orders to better LP etc
  • Prioritized Customer Service Responses

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