国际营销专业英语Unit14Customer Lifetime Value.ppt

Customer Lifetime Value Definition of Customer Lifetime Value Customer lifetime value is a marketing metric that projects the value of a customer over the entire history of that customer’s relationship with a company. The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction. “… the net profit that you will receive from transactions with a given customer during the time that the customer continues to buy from you.” -- The Complete Database Marketer, Arthur M. Hughes Leading companies also include indirect revenue from customer referrals to represent a complete picture of overall customer value. How Valuable are Your Customers Successful customer relationship management starts with fully understanding and measurement of customer lifetime value. In addition, true customer lifetime value analysis requires an in-depth understanding of customer behavior, as well as using past behavior to predict future actions. Calculating Customer Lifetime Value The specific calculation depends on the nature of the customer relationship. Certain data inputs are commonly used when making customer lifetime value calculations. 1. Acquisition cost 2. Churn rate 3. Discount rate 4. Retention cost 5. Time period 6. Initial revenue 7. Initial costs - Acquisition cost - Product cost 8. Future revenue - Incremental purchases - Services and support revenue 9. Future costs - Incremental sale costs - Incremental product costs - Ongoing service and support costs 10. Loyalty (retention rate) 11. Influence value A Formula for Measuring Lifetime Value A general formula for customer lifetime value (LTV) looks something like this: Customer LTV= Value (Initial Revenue - Costs) + net present value (Loyalty * (Future Revenue - Costs)) + net present value (Loyalty * Influence Value)