CUSTOMER LIFETIME VALUE

• What exactly is customer lifetime value? How do organizations use it to inform

marketing decisions? and look at how to calculates the CLV (costumer lifetime value)
• Customer lifetime value is the present value of all future streams of profits that an
individual customer generates over the life of his or her business with the firm. 
two most important details regarding the definition. First, CLV is based on profits, non-revenue;
specifically, it is based on contribution-which is revenue less direct and attributable costs. Metrics
such as market share consider volume or revenue but ignores the cost involved in serving a
customer. Offering low prices or attractive deals may increase sales but could hurt profitability. 
customers who are costly to serve may be less profitable, even if they provide more revenue.