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Customer lifetime value: The essential metric to drive future success in transitioning retail energy markets

Customer Lifetime value in retail energy markets

“This article explains how Energy retailers can embrace their focus on Customer Lifetime Value (CLTV) and improve the sophistication of their CLTV calculation.”


Bud van der Schrier

Partner Global Strategy Group - Deal and Growth Strategy

KPMG Nederland


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Energy retailers' traditional value models are under threat. As price competition intensifies in many markets, churn rates rise and margins fall. The energy transition brings in a range of exciting opportunities, but also new competitors from technology, finance, automotive and telecoms - all keen for a share of the client base.

To avoid a race to the bottom, companies should rethink their acquisition and retention strategies, target setting and operational processes. This means focusing on customers who bring high lifetime value, through greater loyalty and a willingness to purchase additional products and services. However, embracing the customer lifetime value concept is a major shift, calling for cultural acceptance along with new data intelligence capabilities.

Read the latest GSG report, Customer lifetime value in retail energy markets, for insight in how to help your company embrace this new mindset as we expand on key questions such as:

  • What is CLTV as a concept and how can it be applied to energy companies?
  • How can embedding CLTV help companies improve competitiveness?
  • What are the key uses for CLTV in energy companies?
  • How is CLTV calculated across energy retailers?
  • What opportunities exist for companies that apply CLTV in their organizations?

More information

Would you like to know more about this topic? Please contact Bud van der Schrier

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