The customer lifetime value equation essentially views a customer as an income stream. So instead of considering the customer’s purchases as single transactions, the marketing focus becomes creating ongoing series of profitable transactions. These … Read more...
Let’s look at the main CLV formula is two ways – the first way in words and then as a CLV equation (see separate article on another one of my websites). As you will see, the main customer lifetime value … Read more...
There are two main approaches to calculating customer lifetime value.This article discusses the simple approach to calculating customer lifetime value – which is appropriate to use when customer profit contribution to each year are relatively flat. It is also a … Read more...
Why has customer lifetime value – along with many other marketing metrics – becoming more important for marketers to use and understand? One of the key drivers is the shift from “art” to “science” in … Read more...
Customer lifetime value is a measure of customer profitability over time. To help explain this concept, let’s start with a formal definition of customer lifetime value (CLV) from a well-regarded marketing metrics textbook. In the … Read more...
Customer lifetime value is often called marketing’s golden metric. Certainly in most service industries, customer lifetime value would be a very important marketing metric.
Customer lifetime value can be calculated quite simply at times, with a ballpark estimate. This may … Read more...
Brand personas are commonly used in customer journey mapping, but are generally helpful in most aspects of marketing strategy development. This is because a brand persona – which is a representation of the typical customer in a target market… Read more...
A fundamental principle of modern day marketing is to segment the market and select appropriate target markets. For more information on the market segmentation process, please refer to the market segmentation study guide… Read more...
Let’s start our understanding of customer journey mapping by first understanding what is meant by the “customer’s journey”.
As suggested by the name, a customer journey is the progression of a consumer (initially a non-customer … Read more...
Customer journeys, particularly for high involvement purchases, may take years to lead to a purchase decision. For example, a young consumer buying their first brand new car would have years of experience of … Read more...
