what is lifetime value of customers and how can marketers maximise it?
TRANSCRIPT
What is lifetime value of customers, and how can marketers maximise it?
Customer Lifetime Value is “a prediction of the net profit attributed to the entire future relationship with a customer”
“80% of the company’s profits come from the top 20% of it’s customers”
Profitable customer?
Person’s revenue stream > company’s cost for attracting, selling and serving that customer
Customer profitability analysis
CPA is best conducted with the technique ‘activity-based costing’ (ABC)
ABC identifies the real costs included in serving the customers like....
In order to achieve maximum customer lifetime value......
Companies must subtract the costs of attracting,selling and servicing the customers
Created by Yash Akshay Reddy, SVCE , during an internship By Prof. Sameer Mathur, IIM Lucknow.www.IIMInternship.com