Customer Lifetime Value (CLV) Analysis – Tazamall.com
🔹 Definition
CLV measures the total revenue a customer generates throughout their relationship with Tazamall. It helps assess long-term profitability and guides marketing spend.
1️⃣ Key Components of CLV
- Average Order Value (AOV) 🛒
- Example: If customers spend ₨ 3,000 per order.
- Purchase Frequency (PF) 🔄
- Example: On average, a customer orders 4 times a year.
- Customer Lifespan (CL) ⏳
- Example: Customers stay loyal for 3 years.
- CLV Formula: CLV=AOV×PF×CLCLV = AOV × PF × CLCLV=AOV×PF×CL
👉 ₨ 3,000 × 4 × 3 = ₨ 36,000 per customer (lifetime) 💵
2️⃣ Benefits of CLV for Tazamall
- 📊 Marketing Efficiency → Spend smarter on channels that bring long-term customers.
- 🔁 Customer Retention Focus → Loyal customers bring higher CLV than one-time buyers.
- 🎯 Segmentation → Identify high-value buyers (electronics, furniture) vs. low-value buyers (small household items).
- 📦 Cross-Selling & Upselling → Increase AOV via bundled deals, loyalty discounts, subscription models.
3️⃣ CLV-Based Strategies for Tazamall
- Retention Programs 🤝
- Loyalty points, cashback, referral discounts.
- Personalized Marketing ✉️
- AI-driven recommendations to improve purchase frequency.
- Subscription Model 📦
- e.g., monthly delivery for groceries/utilities → increases CL lifespan.
- Customer Support Excellence ☎️
- Smooth after-sales service to keep repeat buyers.
4️⃣ 📈 Sample Insights (vs Competitors)
| Platform | Avg. Order Value | Purchase Frequency | Loyalty Programs | Estimated CLV |
|---|---|---|---|---|
| Daraz | ₨ 2,500 | 3/year | Limited cashback | ₨ 22,500 |
| OLX | High variance | Low (1–2/year) | None | ₨ 10,000 |
| Tazamall ✅ | ₨ 3,000+ | 4/year | Loyalty/referral | ₨ 36,000+ |
👉 Tazamall can outperform competitors by increasing repeat orders & retention.
⚡ Conclusion:
If Tazamall invests in customer retention, loyalty schemes, and personalization, it can boost CLV significantly and gain an edge over Daraz & OLX. 🚀
