lifetime value

lifetime value
Gen Mgt
a measure of the total value to a supplier of a customer’s business over the duration of their transactions.
     In a consumer business, customer lifetime value is calculated by analyzing the behavior of a group of customers who have the same recruitment date. The revenue and cost for this group of customers is recorded, by campaign or season, and the overall contribution for that period can then be worked out. Industry experience has shown that the benefits to a business of increasing lifetime value can be enormous. A 5% increase in customer retention can create a 125% increase in profits; a 10% increase in retailer retention can translate to a 20% increase in sales; and extending customer life cycles by three years can treble profits per customer.

The ultimate business dictionary. 2015.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • lifetime value — ➔ value * * * lifetime value UK US noun [C or U] (ABBREVIATION LTV) COMMERCE ► CUSTOMER LIFETIME VALUE(Cf. ↑customer lifetime value) …   Financial and business terms

  • lifetime value — customer lifetime value; customer equity The future long term profitability of a particular customer, i. e. the amount by which the revenue received from this customer will exceed the cost of attracting, selling to, and servicing him or her.… …   Big dictionary of business and management

  • lifetime value — The future long term profitability of a particular customer. There is no clear agreement on how lifetime value can be measured. One technique is to forecast future cash flows for the customer, identify an appropriate discount rate or cost of… …   Accounting dictionary

  • Customer lifetime value — Contents 1 Definition of Customer Lifetime Value 2 Calculation in customer retention cases 3 Uses and Advantages of CLV 4 References …   Wikipedia

  • Customer Lifetime Value — (CLV) ist allgemein der Deckungsbeitrag, den ein Kunde während seines gesamten „Kundenlebens“ realisiert, diskontiert auf den heutigen Tag. Es ist eine Kennzahl aus der Betriebswirtschaft. Neben historischen Umsätzen wird auch der zukünftig… …   Deutsch Wikipedia

  • customer lifetime value — ➔ value * * * customer lifetime value UK US noun [C or U] (also lifetime customer value, also lifetime value, ABBREVIATION CLV) COMMERCE ► …   Financial and business terms

  • customer lifetime value — See lifetime value …   Big dictionary of business and management

  • lifetime customer value — UK US noun [C or U] COMMERCE ► CUSTOMER LIFETIME VALUE(Cf. ↑customer lifetime value) …   Financial and business terms

  • Customer Lifetime Value (CLV) — 1. Begriff: Kundenertragswert; investitionstheoretischer Kundenwert; Instrument zur Bestimmung der Rentabilität von Kunden. 2. Merkmale: Beim Übergang vom Transaktions zum Beziehungsmarketing (⇡ Relationship Marketing) steht nicht mehr die… …   Lexikon der Economics

  • value — The importance placed on something by an individual. Value is subjective and may change according to the circumstances. Something that may be valued highly at one time may be valued less at another time. The CENTER ONLINE Futures Glossary * * * ▪ …   Financial and business terms

  • Value (economics) — Economics …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”