What is the lifetime value of customers, and how can marketers maximize it?

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Creating Customer Value and Customer Relationships

Transcript of What is the lifetime value of customers, and how can marketers maximize it?

Creating

Customer

Value and

Customer

Relationships

What is Customer Lifetime

Value?

a prediction of the net profit attributed to the entire

future relationship with a customer

Measurement of Customer Lifetime

Value

Where, GC- yearly gross contribution per customer,

M - retention costs per customer per year,

n - the horizon (in years),

r - the yearly retention rate,

d - the yearly discount rate.

Maximizing Customer Lifetime

Value

Customer Profitability

Customer Equity Lifetime Value

-Kanishk Chaturvedi