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Topic: Customer lifetime value

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	PROSPECTING's Lifetime Value Equation (Site not responding. Last check: 2007-11-04)
		By not understanding the lifetime value of a customer, you may be artificially limiting the size of your proven prospect universe, not to mention your revenue and profits.
		This $10 lifetime value, defined as the value of the customer's orders in 1998 dollars, can now be compared with the 1998 cost to acquire the customer.
		One cataloger, for instance, has found that customers who place their first order during the holiday season have half the lifetime value of customers who place their first order at other times of the year.
	bg.catalogagemag.com /ar/marketing_prospectings_lifetime_value (1828 words)

	Customer Lifetime Value Analysis: Overview (SAP Library - Analytical Applications)
		The analysis calculates in particular the profit that a company makes with a typical customer in a lifetime period and the proportion of customers in one lifetime period to be retained by the company by the next lifetime period.
		A lifetime period of a customer is typically a year, but it can be set according to industry-specific requirements.
		The information about past profitability and about customer retention allows you to estimate how the profit made with a customer segment and the number of customers in that segment are likely to develop.
	help.sap.com /saphelp_bw30a/helpdata/en/b1/c2493b3cc11631e10000000a114084/content.htm (331 words)

	Evaluating Strategy Using Lifetime Value
		This cumulative profit is then divided by the original 100,000 customers in each case to determine that the lifetime value is $44 the first year, rising to $103.33 in the third year.
		The lifetime value in Year3 has risen from $102.33 to $125.97 What this means to Hertz is an increase in profits due solely to the new strategy by nearly $23.6 million after all expenses have been paid if 1,000,000 customers become club members.
		When you know the base lifetime value, you should then use your imagination, and some carefully constructed tests to create a new lifetime value table assuming that your strategy is successfully implemented.
	www.dbmarketing.com /articles/Art141.htm (1644 words)

	Customer lifetime value - Wikipedia, the free encyclopedia
		This is a long-term marketing principle which looks at the value to the company of a customer over the whole time that they relate with the company.
		This includes knowing that although a customer may temporarily use another company's products/services, they can return.
		One important consequence of a company taking the long-term view to heart and into action is that the customer tends to have better service and hence tends to be more loyal.
	en.wikipedia.org /wiki/Customer_lifetime_value (108 words)

	Customer Retention: Integrating Lifetime Value into Marketing Strategies
		While they all have customer service departments, and most have a customer service toll free number, they lack an integrated marketing strategy that is directed at retention, and that defines retention as the measurement of success.
		Lifetime value calculation may not be familiar to all readers, so let’s explain some of the terms.
		The lifetime value is obtained by dividing the cumulative net present value profit by the number of originally acquired customers (100,000).
	www.dbmarketing.com /articles/Art112.htm (1972 words)

	Lifetime Value of Customers
		Once we have the trust of the customer, we open the door to many more sales and to referrals, which most of us agree are the very best new customers to get.
		The lifetime value of a customer is a measure of the value of the customer to your business.
		When you know the lifetime value of a customer, you have a benchmark for how much you would or should be willing to invest to acquire a customer.
	www.profitadvisors.com /customer.shtml (402 words)

	Customer Analytics: Customer Lifetime Value
		In my last article, we discussed one aspect of customer value analytics, namely the classification of your customer base into strata based on a set of known value of characteristics.
		For each customer, we subsequently assign a score for each attribute, order the customer set by their combined scores and segment the customers into groups from which we can discover actionable intelligence.
		In fact, there is a concept of “customer lifetime” in which one analyzes both the expected amount of time that an individual should remain as a customer as well as the actual durations of the relationships with individuals.
	www.b-eye-network.com /view/662 (925 words)

	Driving Customer Equity : How Customer Lifetime Value is Reshaping Corporate Strategy (Site not responding. Last check: 2007-11-04)
		In Driving Customer Equity, Roland Rust, Valarie Zeithaml, and Katherine Lemon develop a conceptual framework to help companies reshape their corporate strategy to grow the lifetime value of their customer base, or "customer equity".
		Value equity of a company is "when what it offers matches what the customer expects and perceives value to be." The concept of value equity is used as the foundation of the customer's relationship with the firm.
		Customer Equity provides the reader with sophisticated tools to estimate the financial consequences of the alternatives before they are executed.
	www.enotalone.com /books/0684864665.html (2455 words)

	Customer Lifetime Value
		Customers who are the cheapest to acquire may have the shortest LifeCycles, and customers who are expensive to acquire might have very long LifeCycles.
		The LifeTime Value of a customer is the net profit the customer generates over their LifeCycle.
		The key for an organisation is to understand the relative LifeTime Values of its customers, and use this information to make decisions about allocating marketing ressources to ideas that generate high potential value customers, and away from ideas generating low potential value customers.
	www.leemanpartners.com /customer_lifetime_value.htm (227 words)

	CCG - Customer Lifetime Value (Site not responding. Last check: 2007-11-04)
		For instance, if you are in the supermarket business, choose customers representative of your customer base and calculate their monthly grocery bill.
		Multiply it by set increments of time, keeping in mind that you will be viewing an average lifetime value.
		Lifetime value is a key element of relationship marketing.
	elderbeerman.customer.com /ccgsite/pages/crm_lifetimeval.html (277 words)

	Part 3: What to do as Your Click Prices Increase? (3 of 3 Series) :: Internet World
		While most businesses consider only the value generated from a customerâs first purchase, a business using an average customer lifetime value considers the value generated from all of a customerâs purchases.
		Customer lifetime value is the average time period a customer has a relationship with your business and the total revenue generated during that relationship.
		Although this number is not as reliable as the one generated by a business with years of actual customer purchasing history, it does provide essential information for a marketer to determine customer lifetime value.
	www.iw.com /node/296 (1462 words)

	How to Compute Your Customer Lifetime Value
		Customer Lifetime Value can be calculated in any industry, business to business or business to consumer.
		Putting customer databases in a relational form makes it possible to store an unlimited amount of information about any customer or prospect, and retrieve it in an instant in a hundred different ways.
		To be successful, you need a database that provides a 360 degree picture of your customer, coupled with strategies that recognize and communicate personally with the customer when she shows up in any of the three channels.
	www.dbmarketing.com /articles/Featured.htm (1535 words)

	Customer Lifetime Value, Conversion Rates (Site not responding. Last check: 2007-11-04)
		Customer lifetime value is indicated by subscription conversion rates, right?
		The company tested more than 100 variables over six months, and managed to boost registration conversions by 38% (thousands of new users), and average registrant lifetime value by 60%.
		He found that the more information he asked for, the fewer signups he got, but the higher their lifetime value.
	viral-traffic-machine.com /1inspire/lifetime-value.htm (273 words)

	Determining Customer Lifetime Value for Your Internet Marketing Plan
		After that your customer is inclined to purchase from you, and once you have an address you can target-market to her much less expensively than to the general public.
		Because if you know that each customer will bring you $38 profit over a two year period, then you can afford to break even or even lose money on the first sale in order to acquire the customer, since you know that on average you'll make it up later.
		I'm convinced that this one single fact -- the lifetime value of your customer -- is absolutely vital to an intelligent marketing campaign.
	www.wilsonweb.com /wmt5/customers-value.htm (787 words)

	Drake Direct - Database Marketing Consultants - Customer Lifetime Value Article
		The fact is, Customer Lifetime Value is a lot more than what most folks think it is. If calculated and used properly, it is a strategic tool for which there are many applications.
		Such calculations will not only provide valuable statistics highlighting the value of a customer over the course of his lifetime but also assist in assessing the long-term impact of various marketing decisions to the corporation.
		Begin by conducting a historical lifetime value analysis by cohort group to determine which have the highest average value.
	www.drakebusiness.com /Link_Articles_15.html (665 words)

	Lifetime Value in Relationship Marketing, Customer Loyalty
		LifeTime Value for a customer or wait "a lifetime" to find out the value to use the concept in managing customer value.
		Repeat behavior indicates higher LifeTime Value, and predicts future repeat behavior, regardless of what the actual monetary LifeTime Value is. I can switch money out of the low repeat newsletter into the high repeat newsletter and get higher ROI without having to measure anything but repeat behavior.
		Another challenge to calculating LifeTime Value: usually much of the data you need to complete the simple calculation are not available, or can't be agreed upon by all the players, especially if you are in a big company.
	www.drillingdownbook.com /LTV.htm (1469 words)

	NTF Group - Customer lifetime value
		The net present value or lifetime value of a customer is calculated by adding predicted future cashflows combined with a risk factor unique to each industry, with the cost of acquisition of that customer, over a specified time n.
		Due to the complexity of determining an NPV for each individual customer, and the difficulty of predicting future behavioural changes, NTF recommends that the methodology be applied to groups of like customers.
		Age, gender, income, the total number of customers of this type in the market, their total value over time and our current share of that value.
	www.ntf.com.au /customerlifetime.htm (265 words)

	Customer Lifetime Value (Site not responding. Last check: 2007-11-04)
		Customer Lifetime Value is defined as the total value, in monetary terms, of your average customers spanning the entire period that these customers are likely to do business with you.
		Let's say you've 2,000 steady customers and these customers remain with you for an average of two years; for the past two years, your net profit was $700,000.
		Knowing the Lifetime Value of your customers is crucial to you and your business as it serves as a benchmark without which you'll be groping in the dark.
	www.webpromotionguru.com /articles/lim3.shtml (502 words)

	IMZ - IIM Calcutta - Articles (Site not responding. Last check: 2007-11-04)
		Banks also need to identify customers and products that would be most profitable and target customers with products that are most appropriate to their needs and serve the customers with greater cost efficiency.
		The value proposition, however, was a significant increase in that intangible called customer satisfaction.
		The ability to mass customise the customer experience and refresh the value proposition is necessary to retain the right to do business with the customer.
	www.iimcal.ac.in /imz/article.asp?code=jan_05_04 (1803 words)

	SAS \| TITLE (Site not responding. Last check: 2007-11-04)
		According to Mohan Namboodiri, solutions architect at SAS Institute, customer lifetime value is critical for effective customer valuation.
		One algorithm for determining customer lifetime value adds up the cash flow likely to be generated by an individual policy holder until the time he/she is likely to have cancelled all his/her contracts.
		The company defined customer profitability based on the premise that how customers acted in the past is a predictor for the future.
	www.sas.com /offices/africa/southafrica/news/2002/112002_02.html (362 words)

	The Business Resource - The Business Glossary
		Customer service interacts with customers, on a reactive or proactive basis, more frequently than any other organization and is critical for maintaining customer satisfaction.
		The new metrics of customer profitability, customer lifetime value and share of customer will be needed to supplement the traditional metrics of market share and penetration.
		This is the process whereby a value chain is reorganized to include various functions that were previously thought to provide no value to the end consumer or customer.
	www.business-resources.net /glossary (6196 words)

	Lifetime Value:Customer Retention, Relationship Marketing, Customer Loyalty
		The most difficult part of calculating LTV is deciding what a “lifetime” is. If you have studied customer LifeCycles, you know what it is. The lifetime is the amount of time a customer will stick around before defecting and leaving your business.
		If you are new to this lifetime value stuff and have not tracked the appropriate parameters, or your company is new and lacks meaningful operating history, you can look for "relative lifetime value", link it to customer behavior, and still get tremendous leverage from using LTV / LCV in your business model.
		By the way, using customer behavior to predict the future value and loyalty of customers is a 40 year old technique still used by mail order and TV shopping today.
	www.drilling-down.com /LTV.htm (1460 words)

	A quick guide to customer lifetime value (CLV) (Site not responding. Last check: 2007-11-04)
		Customer lifetime value, also known as CLV or LTV, represents the net present value of profits, coming from the individual customer, which creates a flow oftransactions over time.
		CLV is,then, used as a convenient yardstick of performance; however, it has tended to become a bit too much of a 'holy grail' for corporate, marketing, and sales executives, to the extent that entire conferences and seminars are often devoted to helping optimize it.
		The inherent danger of overfocusing on customer lifetime value is that companies will invest in programs which try to wring profits from only the most active,heaviest spending customers.
	expertanswercenter.techtarget.com /eac/knowledgebaseAnswer/0,295199,sid63_gci974411,00.html (540 words)

	Customer lifetime value - Wikipedia
		WÃ¤hle â Customer lifetime value suchen â um nach Customer lifetime value zu suchen.
		Falls Du diese Seite soeben erstellt hast, kann es sein, dass die Aktualisierung der Datenbank verzÃ¶gert wurde.
		Ein WÃ¶rterbucheintrag zu Customer lifetime value hat seinen Platz im Wiktionary ( Wiktionary).
	de.wikipedia.org /wiki/Customer_lifetime_value (142 words)

	How to Calculate Lifetime Customer Value
		Just because you count a customer life as over for calculation purposes doesn't mean you can't market to that customer in the future.
		You can't calculate LTV because you have no idea what a customer's lifetime will be.
		But don't be surprised if you find your way out of the practice environment and into the real world of lifetime customer value.
	www.clickz.com /experts/crm/analyze_data/article.php/3359611 (793 words)

	List of marketing topics (Site not responding. Last check: 2007-11-04)
		Resources for the Future Library: Water - Research reports (PDF format) and project summaries related to economic and policy aspects of water allocation/management and water quality improvement.
		Sample topics include marketing water, water as a source of international conflict, economic value of fresh water, and cross-media pollution.
		E Power - Specializing in pharmaceutical and healthcare email marketing, advertising, and promotion to individuals who meet specific demographic criteria and who have signed up to receive periodic information on specific medical topics.
	www.nebulasearch.com /encyclopedia/article/List_of_marketing_topics.html (622 words)

	MarQuant Analytics - Computer Models (Site not responding. Last check: 2007-11-04)
		Because marketing data and their interrelationships are highly complex, decision-making is often based on past practices or “gut feel,” with little interpretation of statistical or financial data to determine the best distribution of funds for each marketing activity.
		However, progress in quantitative marketing, coupled with research on MarQuant Analytics Customer Lifetime Valuation model and related decision-making tools, enables executives to proactively optimize marketing resources for maximum impact and returns, improving the chances for longer-term success.
		The MarQuant Analytics Customer Lifetime Value computer model assists executives with budget allocation across the primary marketing activities: customer acquisition and customer retention, cross-selling, up-selling and reacquisition.
	www.marquantanalytics.com /computermodels_customer.html (189 words)

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