what is the lifetime value of customers, and how can marketers maximize it ?
TRANSCRIPT
What Is The Lifetime Value Of Customers,
And How Can Marketers Maximize It ?
Marketing is the art of attracting and keeping profitable customers
A Company could improve its profits by ‘firing’ its
worst customers
A Profitable Customer is a person, household or company that over time yields a revenue stream exceeding by an
acceptable amount the company’s cost stream for attracting, selling and serving that customer
The emphasis is on the lifetime stream of revenue and cost
The emphasis is on the lifetime stream of revenue and cost
We are not talking about a particular transaction
Lifetime Revenue Stream > Lifetime Cost Stream
Lifetime Revenue Stream > Lifetime Cost Stream
That makes for a profitable customer !
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P1
P2
P3
P4
Highly Profitable Product
Profitable Product
Unprofitable Product
Highly Unprofitable Product
C1 C2 C3
High Profit Customer
Mixed Bag Customer
Losing Customer
Customer Profitability Analysis
Estimate Customer Lifetime Value
Realize Your ProfitsLike No One Else
Slides by : Priyanjit Biswas
Created by :
PRIYANJIT BISWAS,JADAVPUR UNIVERSITY
During an Internship by :
Prof. SAMEER MATHUR,IIM LUCKNOW
www.IIMInternship.com