What is the lifetime value of customers, and how can marketers maximize it?
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Creating Customer Value and Customer Relationships
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Transcript of What is the lifetime value of customers, and how can marketers maximize it?
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.