Skip to 0 minutes and 1 secondHope you had fun learning about customer lifetime value. I find this to be an exciting topic. And I truly believe that this has a big future in the coming years for marketing. And it is because customer lifetime value provides a forward looking measure of the customer's relationship with your firm. And it allows marketers to connect marketing strategies to financial consequences. And it is this key component that allows marketers to really use customer lifetime value and improve the effectiveness of marketing. And evaluate whether strategic alternators like targeted promotions, or email campaigns really improve customer retention, and the value of the customer to the firm. I hope you should now be able to define CLV or customer lifetime value.

Skip to 0 minutes and 52 secondsAnd based on this definition, know how to calculate customer lifetime value. And also evaluate the marketing alternatives based on whether they can improve customer retention and lifetime value.

Takeaways: CLV

Focus in on the key points from this week’s material, then think about this week’s objectives and how well you understand CLV. Do you now know what CLV is and why it’s important to marketers? Can you calculate it a few different ways and use those calculations to evaluate marketing alternatives based on whether they improve customer retention and CLV? If not, takes some time to review the materials and ask (and answer) questions in the comments before moving on to the graded final test.

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This video is from the free online course:

Marketing Analytics

Darden School of Business, University of Virginia