Creating

Customer

Value and

Customer

Relationships

What is Customer Lifetime

Value?

a prediction of the net profit attributed to the entire

future relationship with a customer

Measurement of Customer Lifetime

Value

Where, GC- yearly gross contribution per customer,

M - retention costs per customer per year,

n - the horizon (in years),

r - the yearly retention rate,

d - the yearly discount rate.

Maximizing Customer Lifetime

Value

Customer Profitability

Customer Equity Lifetime Value

-Kanishk Chaturvedi