Customer Lifetime Value (CLV) vs. Customer Lifetime Return on Investment (CLROI)
This note presents two related measures for assessing the financial value of a customer to the firm. The first is the well-known measure of Customer Lifetime Value, or CLV for short. The second, which has received much less attention, treats the acquisition of a customer as a financial investment that has a quantifiable return based on future profit streams. Accordingly, we term this latter measure Customer Lifetime Return on Investment, or CLROI for short, and explain how it is calculated. We further show how employing CLROI can yield wildly different marketing implications relative to CLV (despite the strong link between them), particularly for targeting decisions. The note provides multiple examples to illustrate the concepts and also introduces formal characterizations of the two measures. The relevance of segment sizes, customer dynamics, social network influences, and strategic considerations are discussed.
- प्रतिलिपि अधिकार:
- 2014 HBS
Choosing a Book Format
EPUB is the standard publishing format used by many e-book readers including iBooks, Easy Reader, VoiceDream Reader, etc. This is the most popular and widely used format.
DAISY format is used by GoRead, Read2Go and most Kurzweil devices.
Audio (MP3) format is used by audio only devices, such as iPod.
Braille format is used by Braille output devices.
DAISY Audio format works on DAISY compatible players such as Victor Reader Stream.
Accessible Word format can be unzipped and opened in any tool that supports .docx files.