Question

How does Lululemon utilize the Customer Lifetime Value (CLV) to figure out that their primary target is females around 30 years old, leading an active life and balancing work-social lifestyle?

Answer 1

answer-

Customer lifetime value(CLV)

Lululemon

lululemon is canadian based company which deals in the atheletic wears , accessories for both men & women. they sell sport innerwaers & outwears for atheletic & sporty persons.

Customer Lifetime Value (CLV) - it is a marketing method or metric by which company can estimate the net profit from a given customer in this case which are women around 30 years old.

company makes the 30 year old women thier target beacuse of the following facts-

• women around 30 used to perceive that they are getting older & thier fitness is getting worse in handling the work-social lifestyle.
• women around 30 take extra care of thier bodies by going gyms, doing yogas, eating healthy food etc.
• women around 30 start to lose energy & bone density & to get prevention from that they start to do healthy things to keep body energetic & in shape.

above points helped the company to target females as primary customers because from above points we can see that females around 30 start to purchase sporty wears & accessories through which company makes profit.

in this sense company uses the CLV method to estimate the net profit from these customers & to do that they keep eyes on the activities of consumer purchase like-

• average purchase value made by females
• frequecy rate of purchase
• life span of purchase etc.

* above answer is written in my language.hope this would help you.good luck.