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What is the lifetime value of customers, and how can marketers maximize it

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Page 1: What is the lifetime value of customers, and how can marketers maximize it
Page 2: What is the lifetime value of customers, and how can marketers maximize it

A profitable customer:

Who yields a lifetime revenue stream exceeding the amount spent on attracting, selling and serving

Page 3: What is the lifetime value of customers, and how can marketers maximize it

Customers

Products

Customer-Product Profitability Analysis

Page 4: What is the lifetime value of customers, and how can marketers maximize it

Activity-Based Costing

Page 5: What is the lifetime value of customers, and how can marketers maximize it

ABC cost estimation

Making Customer Support

Travel cost Gifts

Page 6: What is the lifetime value of customers, and how can marketers maximize it

Measuring Customer Lifetime Value

“...the net present value of the stream of future profits expected over the customer’s lifetime purchases.”

Page 7: What is the lifetime value of customers, and how can marketers maximize it

•Make Profitable Customer•Do Customer/Product Profitability Analysis•Activity-Based Cost Estimation•Measure Customer Lifetime Value

Page 8: What is the lifetime value of customers, and how can marketers maximize it

Created by Jay Shivani, ISM Dhanbad, during an internship by Prof. Sameer Mathur, IIM Lucknow.www.IIMInternship.com