What is Customer Lifetime Value?

Customer Lifetime Value is a metric that represents the total revenue a business can reasonably expect from a customer throughout their entire relationship with the company. It quantifies the financial value of a customer and helps in understanding how much a business should invest in acquiring and retaining customers.

CLV is a critical metric as it helps businesses:

  • Identify High-Value Customers: Recognize customers who contribute significantly to revenue over time.
  • Allocate Marketing Budget: Determine how much to spend on customer acquisition and retention.
  • Optimize Customer Retention Strategies: Tailor retention programs to enhance loyalty and increase revenue from existing customers.‍
  • Evaluate Long-term Business Performance: Understand the long-term financial health and profitability of the company. Calculating CLV involves summing the revenue earned from a customer and often adjusting for the time value of money. It's a complex but crucial metric that necessitates a data-driven approach to customer relationship management and marketing strategies.

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Retrieval-augmented generation (RAG) is an advanced artificial intelligence technique (Generative AI) that optimizes the output of large language models (LLMs)

LLMOps (Large Language Model Operations)

LLMOps refers to the set of practices and workflows dedicated to developing, deploying, and managing artificial intelligence (AI) models, specifically those based on large language models (LLMs).

Generative AI

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