Solution for automating the B2B sales process from the appearance of a potential customer to concluding a contract

Why does your business need a strong Customer Experience strategy?

• A clear strategy for building effective CX
• Common mistakes that can cost you customers
• Tools and approaches for automating the customer journey

LTV is all about the ability to measure your brand’s existence. If no one comes back to buy your product again, you’ve either failed to deliver on the brand experience or people don’t value that experience.

Taylor Holiday

Managing Partner of Common Thread Collective.

What is LTV (Lifetime Value)

Why Customer Lifetime Value Matters for Your Business

Why Calculate LTV: 7 Reasons for Business Owners

1. Customer segmentation — Understanding which customer groups generate the most profit allows you to focus resources where they matter most.
2. Personalized offers — Creating relevant products, promotions, and communications for different segments gives customers the feeling that they are seen and understood.
3. Marketing cost optimization — Clearly defining how much can be spent to acquire a customer while remaining profitable enables more effective financial planning.
4. Identifying the most profitable channels — Analyzing which sources bring in the highest-LTV customers helps you prioritize these channels in your marketing efforts.
5. Reducing conversion costs — Eliminating ineffective channels and strategies that don’t bring valuable customers ensures budget efficiency.
6. Adapting strategy to high-value leads — Flexibly adjusting approaches based on which customers drive the most growth helps preserve resources.
7. Revenue and ROI forecasting — Accurately calculating how much to invest in acquisition maximizes return on investment.

How to Calculate LTV: Formulas for Different Industries

• Simple LTV Formula for Subscription Services and Recurring Payments

• Basic Multiplicative LTV Formula for eCommerce and Retail

• LTV Formula with Margin and Churn (for SaaS and Online Services)

• NPV Model (for B2B and High-Value Products)

• Segmentation and Analytical Approaches (Applicable Across Industries)

How to Use LTV in Marketing and Business: Practical Applications

• Customer Segmentation LTV is an ideal criterion for segmenting your audience, allowing you to categorize your customer base — from the most valuable to those generating minimal profit. This helps identify high-potential clients and deliver personalized experiences: VIP offers, tailored communication, special discounts, and more.
• Forecasting and Planning Revenue prediction is a core use of LTV. With thoughtful approaches like cohort analysis, channel segmentation, and geographic breakdowns, businesses can estimate where future profits will come from.
• Personalized Offers Analyzing lifetime value reveals which products or services your most valuable customers purchase. This insight enables targeted campaigns, product bundles, and upsell or cross-sell opportunities.
• Retention and Loyalty LTV directly correlates with brand reputation: customers who feel valued return more often and spend more.
• Identifying Growth Opportunities in the Customer Experience A declining LTV in a segment signals waning customer interest. Tracking changes in LTV allows businesses to quickly spot issues in service, communication channels, or product offerings and address them proactively.
• Strategic Planning and Risk Management Knowing LTV helps forecast long-term profitability, plan business scaling, and build realistic financial models. LTV also highlights dependency on a limited customer group. If most revenue comes from a narrow segment, it’s time to consider diversifying audiences and channels, reducing vulnerability to market shifts or changes in customer behavior.
• Efficient Marketing Budgeting LTV provides a clear answer to: “How much can I spend on acquiring a customer (CAC) while still making a profit?” If LTV exceeds CAC, marketing spend is justified. If not, it’s a signal to optimize campaigns or acquisition channels.

Understanding the LTV:CAC Ratio — What It Is and How to Calculate It

• Less than 1:1 — the business is losing money.
• 1:1–2:1 — break-even range; a risky balance.
• 3:1 — considered a “healthy standard”: acquisition costs translate into profit and scalable growth.
• 4:1–5:1 — indicates a profitable business, but growth may be conservative due to cautious marketing spending.

• B2B SaaS: typical range 4:1 — optimal for model stability and customer retention.
• B2C SaaS (mass-market): ~2.5:1 due to lower LTV and broader audience.
• Adtech: 7:1
• Cybersecurity, Fintech, Edtech: ~5:1
• Design: ~6:1
• Business Services: 3:1
• Industrial & Pharmaceutical: 3–4:1 If customers are acquired exclusively through paid channels, the average ratio is ~2.5:1.
• Biotech, Business Consulting, Construction: 4:1
• Financial Services: 4:1
• Real Estate: 4:1

Key Reasons for Low LTV: Business “Mistakes” That Reduce Customer Lifetime Value

1. Lack of systematic customer retention efforts Focusing solely on acquiring new customers often leads to existing ones gradually “falling away.” Without loyalty programs, personalized offers, or post-purchase support, even satisfied customers may turn to competitors.
2. Poor customer experience Slow responses to inquiries, complicated purchase processes, clunky interfaces, or unpredictable delivery delays all undermine trust. Customers remember not just the product, but the entire journey with the brand.
3. Ignoring personalization Sending the same communications to all audience segments risks losing the sense of individualized attention. Personalized recommendations and content increase repeat purchases and average order value.
4. Undervaluing post-purchase support Lack of follow-ups, service reminders, or tips on using the product reduces the likelihood of repeat engagement. Customers are more likely to forget about a brand if it doesn’t stay on their radar.
5. Limited assortment or pricing strategy If customers have nothing new to “discover” in your brand — no new products, promotions, upsells, or cross-sells — LTV stagnates. Expanding your offering allows you to increase purchases per customer without additional acquisition costs.

Seven Ways to Increase Customer Lifetime Value

1. Personalize offers and launch loyalty programs Segment your customer base and use data on past purchases to recommend relevant products and services. Points, bonuses, cashback, or perks for loyal customers motivate them to stay with the brand and buy more often. (For example, about 80% of U.S. consumers belong to loyalty programs — and this increases repeat purchases by around 60%.)
2. Reactivate passive customers Reach out to customers who haven’t purchased in a while — through special offers, discounts, or personalized messages. With this approach, you can re-engage 20–30% of inactive customers before they are considered fully lost.
3. Deliver high-quality service Fast support, clear information, and a willingness to resolve issues build trust and encourage long-term loyalty. Research shows that over 90% of customers are willing to make a repeat purchase if they’ve had a positive service experience.
4. Upsell and cross-sell Offer customers upgraded or complementary products. This not only increases average order value but also enhances the overall product experience. Automated post-purchase offers (for example, right after checkout) can significantly raise customer return rates.
5. Keep the assortment fresh Regularly introducing new products or modifications keeps customers interested and gives them more reasons to come back. This is especially critical in highly competitive industries, where variety directly impacts purchase frequency.
6. Provide educational content and demonstrate expertise Guides, tutorials, video lessons, or webinars help customers get more value from your product. This strategy strengthens brand trust and encourages consistent use.
7. Use analytics to optimize interactions Continuously track LTV and test new tools — from email campaigns to upsell offers. This helps identify which actions deliver the most impact and scale them for greater profitability.

BROCARD Case Study: How LTV Analysis in a CRM System Helped Boost Company Profits

• The first offer is sent 9 months after the last purchase, as this was identified as the optimal reminder period.
• The next offers are sent after 12, 15 months, and so on, with increasing benefits for the customer.
• Only after three years of inactivity does a customer finally move into the “churn” segment.

• justify investments in personalization,
• optimize work with different customer segments,
• balance short-term promotions with long-term loyalty.

FAQ — Most Common Questions About LTV

• What’s the difference between LTV and CLV? In most cases, they are synonyms — Lifetime Value (LTV) and Customer Lifetime Value (CLV) both describe the total profit a business earns from a single customer over the entire period of cooperation. The only nuance is emphasis: LTV is sometimes used in a broader sense, including not only financial value but also referrals and brand influence.
• How often should LTV be recalculated? Ideally, every quarter or after significant changes in pricing, marketing, or customer behavior. In fast-moving industries, even monthly updates may be required.
• Is LTV analysis relevant for all business models? For nearly all. It is especially important in subscription services, e-commerce, mobile apps, SaaS, and B2B. For one-off purchases (e.g., real estate), LTV is less commonly applied.
• Can LTV be calculated by customer segments? Yes — and it’s actually recommended. Segment-level LTV helps identify which groups of customers are the most profitable and adjust marketing strategies for each group.
• How does LTV relate to CAC, ROI, and ARPU? CAC (Customer Acquisition Cost): measures how much it costs to acquire a customer. The LTV:CAC ratio shows the profitability of marketing investments. ROI (Return on Investment): evaluates overall investment efficiency, and higher LTV directly drives ROI growth. ARPU (Average Revenue Per User): average revenue per user, which is one of the components in the LTV formula.
• Can LTV be integrated into a CRM? Most modern CRM systems allow you to automatically calculate LTV based on purchase history and customer interactions, which simplifies segmentation and marketing planning.
• What are the most common mistakes in calculating LTV? 1. Using only revenue without considering margin. 2. Ignoring customer retention costs. 3. Applying average values without segmentation. 4. Calculating based on incomplete or outdated data.

“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.” These words by Greek entrepreneur Aristotle Onassis perfectly reflect BROCARD’s philosophy — a brand that boldly transforms itself with the help of technology.

A Bit of Background:

1. Dynamics 365 Customer Insights Journeys — a tool for effectively orchestrating customer interactions across different channels, ensuring a personalized approach to every shopper.
2. Dynamics 365 Customer Insights Data — a customer data platform that consolidates, analyzes, and leverages diverse information sources to enhance customer engagement.
3. Dynamics 365 Customer Voice — a solution for collecting and analyzing customer feedback, providing valuable insights into satisfaction and loyalty.

BROCARD’s IT Revolution: Key Transformation Triggers and Processes Implemented on the Microsoft Platform

• Order management
• Contact center automation
• Warehouse process automation and the launch of wave picking
• Product catalog management
• Support for marketing activities (including promotions)

• Flexible customer data consolidation
• A full 360° customer view
• Advanced audience segmentation tools
• Extensive capabilities for personalized communication
• Functionality for building complex, branched Customer Journey scenarios
• Integration of Dynamics 365 Customer Voice for surveys, allowing the creation of questionnaires, as well as the collection and analysis of customer feedback

Results of Implementing the Microsoft Solutions Ecosystem

1. Seamless integration of all business components — instead of a “zoo” of systems that failed to synchronize, all processes now run in harmony within a single environment.
2. High-level data protection that meets modern security and privacy requirements thanks to Microsoft’s built-in tools, including data encryption, multi-factor authentication, access management, and more.
3. Cloud-based operations that ensure high availability, flexibility, and business stability regardless of physical infrastructure, user geography, or changes in the operating environment.
4. A scalable architecture that allows the system to expand easily in line with business needs — adding new modules, connecting additional services, and adapting to company growth without requiring a complete overhaul or replacement of IT infrastructure.
5. Full transparency and audit trails, a key advantage for a company that operates openly and complies with all legal requirements. This level of control builds partner trust, simplifies audits, and reduces the risk of human error.
6. Resilience to external risks — for example, POS terminals continue to operate even during power outages or internet loss thanks to local data caching and offline mode. This ensures uninterrupted sales and secure data storage for later synchronization with the central system.
7. Instant customer data updates in the system, which are critical for quality personalization and fast service.
8. Improved cross-department collaboration — no more exchanging spreadsheets, files, or endless email threads, since all data is stored centrally and available in real time.

Practical Cases: How BROCARD’s IT Ecosystem Helps Engage Real Customers

Case #1 — Working with Birthdays

This automation enables:

• Daily delivery of personalized messages
• Four automated customer journeys for four dynamic customer groups
• Journeys that track the occasion seven days in advance — after several experiments, the company optimized the strategy to send communication seven days before the customer’s birthday, with the offer valid for another seven days afterward
• Unique promo codes, secured by linking them to a phone number and PIN
• Name validation against a directory to avoid spelling errors

Previously, marketers couldn’t imagine managing birthday campaigns daily. Now, the automated strategy saves significant time and resources. What’s more, birthday communications generate such impressive sales volumes that they’ve become one of the top three most effective marketing activities at BROCARD.

Antonina Ogandzhanian

Head of Marketing Projects, BROCARD

Case #2 — Reactivating “Dormant” Segments

1. Recency — how recently the customer made a purchase.
2. Frequency — how often the customer buys.
3. Monetary — the total amount spent.

• The “dormant” segment shrank by 4.9×
• The potential churn segment decreased by 3.8×
• The churn segment decreased by 1.5×

Case #3 — Working with Wishlists

1. Using wishlist data to promote certain brands or individual products.
2. Personalizing prices for specific customer segments, making offers more attractive — for example, notifying customers about price reductions on items from their wishlist.
3. Increasing the effectiveness of campaigns, as communications are based on the customer’s actual interests.

Case #4 — Promotion Hierarchy

• Percentage or fixed-amount discounts
• Special offers that are valid only in certain locations, channels, or for a defined period
• Promotions on the entire assortment or specific brands
• Gifts with purchase, and more

1. Marketers save time entering promotions into the system.
2. Customers always get the best price — if a product qualifies for multiple promotions, the system automatically applies the best discount.
3. Cashiers can focus on serving customers, as the system handles all calculations automatically, eliminating the risk of errors.

Case #5 — Promo Codes

• The promo code is generated.
• Activation rules are defined.
• During purchase, the system automatically applies the discount or triggers the corresponding promotion.

• Audience segmentation is performed to determine who will receive the promo code.
• Communication is launched — triggered, for example, on a customer’s birthday or when they move into a different segment.

Case #6 — Next-Generation Gift Cards

• They are created only after purchase.
• They are linked to a phone number.
• They are protected with a one-time dynamic password.

Conclusions: How Implementing Microsoft-Based Solutions Transformed BROCARD’s Marketing

1. True understanding of the customer — not just their age or location, but deeper behavioral patterns, preferences, and habits.
2. Instant responses to customer actions — regardless of the channel, since data flows into the CRM almost in real time.
3. Significant reduction in time needed to analyze information and launch new initiatives.
4. Improved effectiveness of marketing campaigns — through precise segmentation, personalization, and the use of triggers.
5. Optimization of marketing costs — only relevant campaigns for the right audience.

Why can we confidently say this works?

Implementing fundamental solutions for customer data processing is the first and foremost step toward adopting AI and predictive models. BROCARD is already confidently moving forward along this path. Experience shows that those who sow the seeds of change first will be the first to reap the harvest. That’s why at SMART business we were glad to see BROCARD embrace hyper-personalized marketing, and we will be just as happy to celebrate their success in mastering AI.

Denys Shevchuk

Business Development Manager for CRM solutions

A partnership that delivers results

SMART business has experience implementing all Microsoft solutions, and our collaboration has lasted a full 8 years. Often, we come with just an idea or a dream, and together we dive into the project, even if much is unknown at the start. But thanks to the synergy of our teams, we confidently navigate this path and achieve the desired results. We know for sure — many ambitious plans lie ahead!

Antonina Ogandzhanian

Head of Marketing Projects, BROCARD

BROCARD’s experience proves it: digitalization is an investment in business growth. High-quality segmented marketing is only possible when a strong team is supported by modern IT solutions. Thanks to the transformation the retailer began back in 2016, today, in 2025, BROCARD is among the Ukrainian retailers that can proudly offer personalized communication with each of its 2.5 million customers — often directly leading to a purchase. Moreover, the Microsoft solutions ecosystem has provided BROCARD with seamless integration across key business functions. Financial and management accounting, warehouse operations, website and app processes, customer communications, and office work are all united by the technologies of a single vendor. As a result, customer, sales, and financial data are consolidated without duplication. And as the saying goes: those who hold information, hold the world.

Kyrylo Rudnev

Co-Founder and Managing Partner, SMART business