What is CLTV prediction in SAP CRM-ANA - CRM Analytics?

SAP Term: CLTV prediction

• Component: CRM-ANA

• Component Name: CRM Analytics

• Description: Determined for a customer segment using the customer lifetime value. It predicts the profit that is expected to be made in future with the existing customer base and how many customers will be retained.

Smart SAP Assistant

• Key Concepts: 
  CLTV prediction stands for Customer Lifetime Value prediction. It is a predictive analytics tool within the SAP CRM Analytics component that helps businesses to identify and predict customer lifetime value. It uses customer data to calculate the expected future value of a customer over their lifetime. 
  
  How to use it: 
  CLTV prediction can be used to identify customers who are likely to generate the highest value over their lifetime. This can help businesses to focus their marketing efforts on those customers and increase their return on investment. The tool also helps businesses to identify customers who are likely to churn and take proactive steps to retain them. 
  
  Tips & Tricks: 
  When using CLTV prediction, it is important to ensure that the customer data used is up-to-date and accurate. This will help ensure that the predictions generated are reliable and can be used to make informed decisions. 
  
  Related Information: 
  CLTV prediction is part of the SAP CRM Analytics component, which also includes other predictive analytics tools such as customer segmentation, propensity modeling, and customer journey analysis. These tools can be used together to gain a better understanding of customer behavior and make more informed decisions about marketing strategies.