Customer Lifetime Value-Experience Matrix

The Customer Lifetime Value-Experience Matrix is a 2x2 matrix used to assess the customer experience and lifetime value of a business. It helps to identify areas of improvement and opportunities for growth.

At a very high level, the Customer Lifetime Value-Experience Matrix is used in the context of business, marketing, finance.

Customer Lifetime Value-Experience Matrix quadrant descriptions, including examples
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What is the Customer Lifetime Value-Experience Matrix?

A visual explanation is shown in the image above. The Customer Lifetime Value-Experience Matrix can be described as a matrix with the following quadrants:

  1. High Lifetime Value, Low Experience: Customers who have a high lifetime value to the business, but have a low experience with the product or service.
  2. High Lifetime Value, High Experience: Customers who have a high lifetime value to the business, and have a high experience with the product or service.
  3. Low Lifetime Value, Low Experience: Customers who have a low lifetime value to the business, and have a low experience with the product or service.
  4. Low Lifetime Value, High Experience: Customers who have a low lifetime value to the business, but have a high experience with the product or service.

What is the purpose of the Customer Lifetime Value-Experience Matrix?

The Customer Lifetime Value-Experience Matrix is a 2x2 matrix used to assess the customer experience and lifetime value of a business. It helps to identify areas of improvement and opportunities for growth.

The matrix is divided into four quadrants. The top-left quadrant is labeled 'High Lifetime Value, Low Experience'. This quadrant represents customers who have a high lifetime value to the business, but have a low experience with the product or service. This could be because of a lack of customer service, or a product that is difficult to use. The top-right quadrant is labeled 'High Lifetime Value, High Experience'. This quadrant represents customers who have a high lifetime value to the business, and have a high experience with the product or service. This could be because of excellent customer service, or a product that is easy to use. The bottom-left quadrant is labeled 'Low Lifetime Value, Low Experience'. This quadrant represents customers who have a low lifetime value to the business, and have a low experience with the product or service. This could be because of a lack of customer service, or a product that is difficult to use. The bottom-right quadrant is labeled 'Low Lifetime Value, High Experience'. This quadrant represents customers who have a low lifetime value to the business, but have a high experience with the product or service. This could be because of excellent customer service, or a product that is easy to use.

By analyzing the Customer Lifetime Value-Experience Matrix, businesses can identify areas of improvement and opportunities for growth. For example, if the majority of customers are in the top-left quadrant, the business can focus on improving the customer experience to increase lifetime value. On the other hand, if the majority of customers are in the bottom-right quadrant, the business can focus on increasing the lifetime value of customers to improve the customer experience.


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What templates are related to Customer Lifetime Value-Experience Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Customer Lifetime Value-Experience Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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