Measurement

Customer Lifetime Value Calculator

For those of you wondering about customer lifetime value, why it’s important, and how to calculate it — here’s an easy-to-understand narrative and simple lifetime value calculator, (compliments of the Harvard Business School).

This is one of the core “foundation questions” we ask our clients and is part of our separate blog post series on the subject of measuring business basics.  Its difficult (if not impossible) for any marketing organization to target prospective customer segments and make decisions about how much to invest to acquire prospects from those segments, if there is no understanding of the forecasted economic value of the prospective customer.

Enjoy

Tags: customer acquisition cost, customer lifetime value