Customer Lifetime Value

CALCULATION, USE & DECISION MAKING

Marketing is all about

 Value Creation (cost)

 Value Delivery (cost)
 Value Communication (cost)
 Value in Return (Revenue)
Customer is an Asset

 Asset Acquisition
 Asset Maximization
 Asset Retention
Lets calculate
Pre- paid Vs Post paid
CLV for Cohort
Use of CLV for marketing decision

 To decide which customer segment would be more profitable to

target
 To decide on scale up or scale down marketing expenditure for
particular customer group
 To rank/ create customer pyramid: Diamond, Platinum, Gold, Silver
etc.
 To fire / stop pursuing customers having negative LTV.
 To decide on customer acquisition spending, cross selling, up selling
etc.
 To analyze effectiveness and efficiency of any marketing programs.
Thank You