| | Marketing For The Bottom Line |
Perhaps the best article we've seen on why it's so essential to take a long-term view of marketing investments. If you read nothing else, READ THIS!!
| | | Which Customers Are Worth Keeping and Which Ones Aren't? |
Lifetime value is after the fact. The tricky part is forecasting the prospective value; how do you know what this customer will do in the future?” This articles delves into the practical challenges of using customer lifetime value and current thinking on the subject of customer valuation in general [although written in 2003, this article is valuable and quite relevant years later].
| | | What Are Your Customers Really Worth? |
[An excerpt from the book "Managing Customers As Investments" by Sunil Gupta et. al] A tight focus on customer value and market share misses a important component -- the value of a customer to a company. The authors suggest ways to make better strategic decisions based upon balancing the two sides of customer value -- the value that a firm provides to a customer and the value of a customer to the firm.
| | | That Elusive Customer Loyalty (How to build it, learn from it ... |
In determining which customers are worth the cost of long-term relationships, it is useful to consider their lifetime value. This depends on: current profitability computed at the customer level the propensity of those customers to stay loyal expected revenues and costs of servicing such customers over the lifetime of the relationship Building relationships makes most sense for customers whose lifetime value to the company is the highest.
| | | Taming Complexity in Services: Stay Close to Your Customer (But Not Too Close) |
Wireless phone companies measure a customer's value by what they call the "lifetime value," or the charges customers pay during the length of time they stay with their service provider. The key question for a wireless phone company looking to get bigger "lifetime" bucks from its customers is: Do I change the access fee or the per-minute rate after the free minutes are exhausted? The implications apply to nearly all marketers who, similarly, look to maximize LTV while minimizing defection (or what the telecom industry calls "churn").
| | | Beware the 'Walking Dead': Analyzing Customer Data from a Multi-Service Firm |
The authors suggest that for some customers who are currently active, their next action will likely be to discontinue their relationship with the firm. These customers, they argue, are best left alone in the hopes of delaying their defection. The authors also say their model can be used place a dollar value on customers in the various states of purchasing behavior.
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