Should we prioritize certain customer segments over others based on their lifetime value (LTV) or engagement level?

Prioritizing certain customer segments over others based on their lifetime value (LTV) or engagement level can be a smart strategy, as it allows you to focus your resources on the customers who are most valuable to your business.

Here are some factors to consider when deciding whether to prioritize customer segments based on LTV or engagement level:

1. LTV: Customers with a high LTV are typically those who make repeat purchases, spend more money, and have a longer relationship with your brand. Prioritizing these customers can help you increase revenue and build long-term loyalty. To identify high LTV customers, you'll need to track their purchase history, frequency, and average order value.
2. Engagement level: Customers who are highly engaged with your brand are more likely to make repeat purchases, recommend your products or services to others, and provide valuable feedback. Prioritizing these customers can help you build a loyal customer base and improve your brand reputation. To identify highly engaged customers, you'll need to track their interactions with your brand, such as website visits, email opens, and social media engagement.
3. Resource constraints: Prioritizing customer segments based on LTV or engagement level can help you allocate your resources more effectively. However, it's important to consider your resource constraints when making these decisions. If you have limited resources, you may need to prioritize high LTV customers over highly engaged customers, or vice versa, depending on your business goals.
4. Business goals: Ultimately, the decision to prioritize certain customer segments over others should be based on your business goals. If your goal is to increase revenue, prioritizing high LTV customers may be the best approach. If your goal is to build brand awareness and loyalty, prioritizing highly engaged customers may be more effective.

In general, prioritizing customer segments based on LTV or engagement level can be a smart strategy, as it allows you to focus your resources on the customers who are most valuable to your business. However, it's important to consider your resource constraints and business goals when making these decisions.