Customer Lifetime Value-Value Matrix
The Customer Lifetime Value-Value Matrix is a 2x2 matrix that helps businesses identify the value of their customers over time. It divides customers into four categories based on their potential lifetime value and their current value.
At a very high level, the Customer Lifetime Value-Value Matrix is used in the context of business, marketing, finance.
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- IT Capability Maturity Matrix
- IT Service Management Capability Assessment Matrix
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- IT Service Management Maturity Matrix
- IT Service Management-Value Matrix
- ITIL Service Capability Matrix
- ITIL Service Value Matrix
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- Key Performance Indicator (KPI) Matrix
- Key Performance Indicator (KPI) Matrix
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- Kraljic Matrix
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- Market Attractiveness-Competitive Strength Matrix
- Market Attractiveness-Value Matrix
- Market Development Matrix
- Market Development-Growth Matrix
- Market Development-Size Matrix
- Market Environment-Competitive Intensity Matrix
- Market Environment-Market Growth Matrix
- Market Environment-Market Share Matrix
- Market Environment-Market Size Matrix
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- Market Growth Matrix
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- Market Opportunity-Size Matrix
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- Marketing Analytics Matrix
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- Marketing Campaign-Performance Matrix
- Marketing Effectiveness Matrix
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- Marketing Effectiveness-Value Alignment Matrix
- Marketing Effectiveness-Value Stream Alignment Matrix
- Marketing Mix Strategy Matrix
- Marketing Mix-Performance Alignment Matrix
- Marketing Mix-Performance Matrix
- Marketing Mix-Value Matrix
- Marketing Performance Matrix
- Marketing Plan Matrix
- Marketing Research Matrix
- Marketing Research-Analysis Matrix
- Materiality Assessment Matrix
- Maturity Assessment Matrix
- Maturity Assessment-Value Matrix
- Maturity Level-Performance Matrix
- Maturity Level-Value Alignment Matrix
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- Maturity Level-Value Proposition-Value Stream-Value Chain Alignment Matrix
- Maturity Level-Value Proposition-Value Stream-Value Chain-Performance Alignment Matrix
- Maturity Level-Value Stream Alignment Matrix
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- Net Promoter Score-Performance Matrix
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- Organizational Capability-Performance Matrix
- Organizational Capability-Value Alignment Matrix
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- Organizational Capability-Value Stream Alignment Matrix
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- Organizational Change Readiness Matrix
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- Organizational Design-Performance Matrix
- Organizational Design-Value Chain Alignment Matrix
- Organizational Design-Value Matrix
- Organizational Design-Value Proposition-Value Stream Alignment Matrix
- Organizational Design-Value Stream Alignment Matrix
- Organizational Development Maturity Matrix
- Organizational Effectiveness-Value Alignment Matrix
- Organizational Effectiveness-Value Matrix
- Organizational Effectiveness-Value Proposition-Value Chain Alignment Matrix
- Organizational Effectiveness-Value Proposition-Value Stream-Value Chain Alignment Matrix
- Organizational Effectiveness-Value Stream Alignment Matrix
- Organizational Health Assessment Matrix
- Organizational Health Matrix
- Organizational Performance Matrix
- Organizational Performance-Effectiveness Matrix
- Organizational Performance-Value Matrix
- Organizational Readiness-Value Matrix
- Organizational Resilience Matrix
- Organizational Resilience-Performance Matrix
- Organizational Resilience-Value Chain Alignment Matrix
- Organizational Resilience-Value Matrix
- Organizational Resilience-Value Proposition-Value Stream Alignment Matrix
- Organizational Resilience-Value Stream Alignment Matrix
- Organizational Risk-Opportunity Matrix
- Organizational Structure-Value Matrix
- Organizational Sustainability Matrix
- Outsourcing Matrix
- Outsourcing Risk-Value Matrix
- Paid Search-Competitive Positioning Matrix
- Partner Selection Matrix
- Partnership Marketing Matrix
- People Capability Maturity Matrix
- Perception-Positioning Matrix
- Performance and Potential Matrix
- Performance Appraisal Matrix
- Performance Feedback Matrix
- Performance Management Maturity Matrix
- Performance Management-Value Chain Alignment Matrix
- Performance Management-Value Matrix
- Performance Management-Value Proposition-Value Stream Alignment Matrix
- Performance Management-Value Stream Alignment Matrix
- Performance Measurement Matrix
- Performance-Matrix Marketing
- Performance-Value Chain Alignment Matrix
- Performance-Value Matrix
- Performance-Value-Complexity Matrix
- Personality Assessment-Value Matrix
- Personalization Matrix
- PESTLE Analysis Template
- PICK Matrix
- Porter's Five Forces Framework
- Portfolio Analysis Matrix
- Portfolio Analysis-Evaluation Matrix
- Portfolio Analysis-Performance Alignment Matrix
- Portfolio Analysis-Value Alignment Matrix
- Portfolio Assessment-Performance Alignment Matrix
- Portfolio Optimization-Value Alignment Matrix
- Portfolio Optimization-Value Stream Alignment Matrix
- Portfolio Performance-Value Matrix
- Positioning Matrix
- Process Capability Assessment-Value Alignment Matrix
- Process Capability Matrix
- Process Capability-Performance Matrix
- Process Capability-Value Alignment Matrix
- Process Improvement Matrix
- Process Improvement Maturity Matrix
- Process Improvement-Performance Alignment Matrix
- Process Improvement-Value Alignment Matrix
- Process Improvement-Value Stream Alignment Matrix
- Procurement Capability-Value Matrix
- Procurement Maturity Matrix
- Product Adoption Matrix
- Product Costing Matrix
- Product Design Matrix
- Product Design-Development Matrix
- Product Design-Value Matrix
- Product Development Matrix
- Product Development-Reward Matrix
- Product Development-Risk Matrix
- Product Development-Risk-Value Alignment Matrix
- Product Development-Value Matrix
- Product Differentiation Matrix
- Product Feature Matrix
- Product Feature-Value Alignment Matrix
- Product Feature-Value Matrix
- Product Launch-Performance Matrix
- Product Life Cycle Matrix
- Product Portfolio Matrix
- Product Positioning Matrix
- Product Roadmap Matrix
- Product Roadmap-Performance Matrix
- Product-Market Fit Matrix
- Product-Market Matrix
- Product-Market-Technology Matrix
- Product-Service Matrix
- Product-Service Mix Matrix
- Productivity Improvement Matrix
- Program Management Maturity Matrix
- Project Benefit Matrix
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- Project Management Capability-Value Stream Alignment Matrix
- Project Management Matrix
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- Project Management-Performance Alignment Matrix
- Project Prioritization Matrix
- Project Prioritization-Alignment Matrix
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- Project Risk-Value Matrix
- Promotions Matrix
- Prospecting Matrix
- Public Relations Matrix
- Purchase Decision Matrix
- Quadrant Analysis
- Quality Control Matrix
- Quality Control-Performance Matrix
- Quality Function Deployment Matrix
- Quality Management Capability Assessment Matrix
- Quality Management Capability-Value Alignment Matrix
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- Quality Management Matrix
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- Rational Decision-Making Matrix
- Recruitment Capability-Value Matrix
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- Relationship Management Matrix
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- Requirements Traceability Matrix
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- Risk Analysis Matrix
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- Risk-Return Matrix
- Roadmap Matrix
- Root Cause Identification Matrix
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- Sales and Marketing Alignment Matrix
- Sales and Marketing Alignment Matrix
- Sales and Marketing Performance-Value Chain Alignment Matrix
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- Sales and Marketing Performance-Value Matrix
- Sales and Marketing Performance-Value Proposition Alignment Matrix
- Sales and Marketing Performance-Value Proposition Alignment Matrix
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- Sales and Marketing-Value Proposition Alignment Matrix
- Sales and Marketing-Value Stream Alignment Matrix
- Sales Capability-Value Matrix
- Sales Effectiveness-Value Matrix
- Sales Force Effectiveness Matrix
- Sales Growth Matrix
- Sales Maturity Matrix
- Sales Performance Matrix
- Sales Performance-Value Alignment Matrix
- Sales Performance-Value Proposition Alignment Matrix
- Sales Performance-Value Proposition-Value Chain Alignment Matrix
- Sales Performance-Value Stream Alignment Matrix
- Sales Performance-Value Stream-Value Proposition Alignment Matrix
- Sales Performance-Volume Matrix
- Sales Pipeline Matrix
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- Sales-Value-Complexity Matrix
- Scenario Planning Matrix
- Scrum Agile Matrix
- Search Engine Optimization Matrix
- Security Capability-Value Matrix
- Service Blueprinting Matrix
- Service Capability-Value Matrix
- Service Delivery Capability Assessment-Performance Alignment Matrix
- Service Delivery Capability Assessment-Value Alignment Matrix
- Service Delivery Capability Maturity Assessment-Value Matrix
- Service Delivery Capability Maturity Matrix
- Service Delivery Capability-Value Alignment Matrix
- Service Delivery Matrix
- Service Delivery Performance-Value Alignment Matrix
- Service Delivery Performance-Value Matrix
- Service Delivery-Value Alignment Matrix
- Service Delivery-Value Matrix
- Service Design and Delivery Capability Assessment Matrix
- Service Design and Delivery Matrix
- Service Design and Delivery-Value Alignment Matrix
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- Service Innovation-Performance Alignment Matrix
- Service Innovation-Value Matrix
- Service Innovation-Value Proposition Alignment Matrix
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- Service Management Capability Assessment-Value Matrix
- Service Management Capability Maturity Matrix
- Service Maturity Matrix
- Service Performance-Value Matrix
- Service Profit Chain Matrix
- Service Quality Matrix
- Service-Value-Complexity Matrix
- Six Sigma DMAIC Matrix
- Six Thinking Hats Matrix
- Skill Gap Matrix
- Skill-Will Matrix
- Skills Assessment-Development Matrix
- Skills Assessment-Mapping Matrix
- Skills Assessment-Value Matrix
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- SWOT Analysis Matrix for Marketing
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- Workforce Performance-Value Chain Alignment Matrix
- Workforce Performance-Value Proposition-Value Chain Alignment Matrix
- Workforce Performance-Value Stream Alignment Matrix
- Workforce Skill Development Matrix
- YouTube Marketing Matrix
What is the Customer Lifetime Value-Value Matrix?
A visual explanation is shown in the image above. The Customer Lifetime Value-Value Matrix can be described as a matrix with the following quadrants:
- High Potential, High Value: Customers who have the potential to become long-term, loyal customers and are already providing a high level of value to the business (e.g. a customer who has been with the business for a long time and spends a lot of money)
- High Potential, Low Value: Customers who have the potential to become long-term, loyal customers but are currently providing a low level of value to the business (e.g. a customer who has just joined the business and has not yet spent much money)
- Low Potential, High Value: Customers who are currently providing a high level of value to the business but have a low potential to become long-term, loyal customers (e.g. a customer who has been with the business for a short time and spends a lot of money)
- Low Potential, Low Value: Customers who have a low potential to become long-term, loyal customers and are currently providing a low level of value to the business (e.g. a customer who has been with the business for a short time and spends very little money)
What is the purpose of the Customer Lifetime Value-Value Matrix?
The Customer Lifetime Value-Value Matrix is a 2x2 matrix that helps businesses identify the value of their customers over time. It divides customers into four categories based on their potential lifetime value and their current value. The four categories are: high potential, high value; high potential, low value; low potential, high value; and low potential, low value.
The high potential, high value customers are the ones that businesses should focus on. These are the customers that have the potential to become long-term, loyal customers, and they are already providing a high level of value to the business. These customers should be nurtured and given special attention in order to maximize their value.
The high potential, low value customers are the ones that businesses should invest in. These customers have the potential to become long-term, loyal customers, but they are currently providing a low level of value to the business. These customers should be given special attention in order to increase their value.
The low potential, high value customers are the ones that businesses should be aware of. These customers are currently providing a high level of value to the business, but they have a low potential to become long-term, loyal customers. These customers should be monitored in order to maintain their value.
The low potential, low value customers are the ones that businesses should avoid. These customers have a low potential to become long-term, loyal customers and they are currently providing a low level of value to the business. These customers should be avoided in order to minimize their impact on the business.
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What templates are related to Customer Lifetime Value-Value Matrix?
The following templates can also be categorized as business, marketing, finance and are therefore related to Customer Lifetime Value-Value 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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