A large section of customers prefers to have better services at a cheaper rate. Such customers are more likely to leave the company's services sooner than expected. Identifying such customers is crucial to reduce the loss in the profit. Companies have to manage, measure, and predict the lifetime value of the customer (CLV) and target their spending on the ones who are likely to have greater CLV.

CLV is determined by real-time analysis of customer purchasing activities, service utilization, and overall behavior. This plays an important role in estimating future profits and revenue generation. Smart analytics solutions classify the customers into three categories, profitable, nearly profitable, and unprofitable. This information is used to predict future cash inflow.