MKT 700 Lecture Notes - Lecture 6: Customer Engagement, Fashion Blog, Web Banner
Document Summary
In general, customer lifetime value is a term that describes how much revenue or profit you can expect from customers over their lifetime doing business with you. (artun 64) In general, it is the sum of future profits of a customer over a standard time period: for example rogers / month phone bill, of which is profit. If clv period is 5 years, then for this customer: clv= profit* 12months * 5 years = ,500, marketing objective is to maximize clv. Clv levers: understanding the levers which influence each customers spend is key to maximizing clv. Customer stage: first value or recurring value or new value. Customer metrics (class 3: recency, first order size, time on site, time between orders, Monetary value: traditional method of who would likely buy. 444: recency, first order size, time on site, time (frequency), discount between orders (monetary value), basket variety, geography,
