## Outcomes of customer satisfaction

#### The two dimensions of customer satisfaction

The customer’s assessment of their satisfaction following a purchase and consumption of a product involves a comparison of two views:

1. What were their EXPECTATIONS of value prior to purchase?
2. What was their perception of
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## How to Use the Full CLV Calculator

You only need to enter four numbers – please only type over the numbers in the white cells – the numbers in the orange cells are automatically calculated for you.

To calculate the … Read more...

## Videos on CLV

There are five CLV videos available here:

1. Using the free Excel CLV template (available for download on this site)
2. A step-by-step guide to the CLV formula and calculation
3. Using Excel to calculate CLV (without the above template)
4. A guide to
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## What does a discount rate do?

Discount rate converts future cash flows (that is revenue/profits) into today’s money for the firm. For example, if you put \$100 into a bank account today that have 10% interest, then in 12 months’ … Read more...

## The Leaky Bucket Theory or Analogy?

The leaky bucket theory is more of an analogy than a theory. It is used because it is a nice and simple way of understanding the concept of customer relationship management and how to Read more...

## CLV and Customer Relationship Management (CRM)

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...

## Main CLV Formula

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...

## Simple CLV Formula

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...