Login

Username:Password:

• Register here
• Forgotten Your Username
  or password?

• Leading Articles
• Case Studies
• Cutting Edge
• Market Reports
• Information Services
• Consultants Directory
• Critical Facts
• Marketing Glossary
• Marketing Knowledge
  • Agenda Papers
  • Brands and Branding
  • Customer Relationship Management - CRM
    • 3 CRM Factfiles
      • Catalyst CRM Methodology
      • CRM Analytics
      • Business Models
      • CRM Deployment
      • CRM Questionnaire
      • CRMs Future
      • Data, Data Everywhere
      • *Index
      • Lifetime Value and CRM
      • Marketing Automation
      • The CRM Package
  • E-Branding
  • Ethics and Sustainability
  • Innovation
  • Internal Branding
  • Marketing Effectiveness
  • Marketing to Business
  • Media Neutral Planning
  • Pan-Company Marketing
  • Promoting Marketing
  • Services Marketing
  • Small Business Solutions
  • The Impact of E-business on Marketing and Marketers
  • the marketer
• Marketing Links
• Research Surveys

Lifetime Value and CRM

Customer Relationship Management (CRM) can help achieve three primary business objectives:

1. Acquisition of new customers
2. Retention of current customers
3. Increased value of your customers

One of the most important analytical tools a marketer can use in assessing and tracking customer relationship profitability is lifetime value (LTV) analysis.  LTV not only underpins CRM marketing programmes but also helps guide overall marketing investment decisions. LTV helps measure, forecast and track future revenues and profit based on transactions and interactions over time.

To calculate LTV you need three inputs:
 
1. Revenue
2. Duration of the relationship
3. Costs

To read this factfile in full, please download the attached pdf (scroll down to the bottom of the page).

To download a full 122 page report on CRM (containing all the factfiles) please see  Customer Relationship Management, Volume 1.

© The Chartered Institute of Marketing 2008 Disclaimer and Privacy Statement