Customer value model

A customer value model is a way of figuring out how valuable a customer is to a business. For example, a business may look at how often a customer buys their products or how much money they spend each time they buy something. Based on this information, the business can decide how much they want to spend to try to get that customer to come back and buy more things. The more valuable a customer is, the more helpful it can be for the business to spend more money on things like discounts or special offers to keep them happy.