Customer Lifetime Value Archive
Customer Lifetime Value (CLV) is widely discussed in marketing. Unfortunately, given marketers rarely refer to anyone else’s ideas this just leads to lots of people having their own view. This means when one looks up CLV online you are very likely to get a …
Ex-Ivey PHD student and now University of Calgary professor, Charan Bagga, and I have just published an article on the teaching of CLV (Customer Lifetime Value). We surveyed the state of case-based teaching materials related to CLV and found them a pretty …
Peter Fader and Bruce Hardie are experts in understanding the value of customer relationships. They have offered advice on problems with CLV calculations, especially those taught in MBA programs. They outline five issues. Many of these are things to bear …
V Kumar (the editor of the Journal of Marketing) and student Sarang Sunder have undertaken a review of the use, and potential use, of Customer Lifetime Value (CLV) in the Consumer Packaged Goods (CPG) industry. They talk about the problems …
With Charan Bagga I have just published an article in the Sloan Management Review (see the article here). This central message is a bit cranky; it could be entitled, “annoying things that marketers do”. We highlight “…five of the best-known marketing metrics: market …
Itamar Simonson and Emanuel Rosen suggest that with greater access to information consumers can (and do) make much better purchasing decisions. They are, in effect, arguing that much academic work in marketing is too artificial as in the real world consumers can solve problems …
Marketing is too often seen as an expense. The money spent on marketing isn’t expected to deliver any long terms benefits by this logic. It is not very surprising that something that is treated as an expense is under pressure …
Customer Lifetime Value (CLV) is a great thing to calculate. It encourages marketers to take the numbers seriously. It helps finance people see the numerical basis of marketing. Calculating CLV encourages you to treat customers well; they are valuable and …
Marketing suffers from serious definitional problems which undermine the communication function of metrics. I therefore recommend a step forward; lets all exclude acquisition costs from customer lifetime value (CLV) calculations. Customer lifetime value is the net present value of a …
