Customer Lifetime Value (CLV) predictions help MVNOs to understand if the money they use to acquire new customers is well spent. They can also reveal the most valuable customers. By looking at the total CLV of customers acquired through each channel, source and campaign, MVNOs can determine which are the most profitable and calculate the average revenue per user (ARPU) for each.
CLV analytics enable MVNOs to use their resources more wisely, particularly when planning their acquisition and retention campaigns. They also help MVNOs to make smarter decisions across a whole range of business areas, from product development to sales and marketing, and to provide more reliable customer service, helping them to maintain a long-term relationship with customers.
MVNOs can double the power of CLV analytics by tying it to churn prediction. This will enable them to optimise their retention efforts, which will reduce their subscriber acquisition costs (SAC) - the second largest cost in an MVNO - as they won’t need to replace churning customers.