Increasing Customer Lifetime Value

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  Aspennow03/13/07 Report as spam
  1

  Good article but...

  The article points out, accurately, that CLV is a key strategic marketing metric.
  However, it makes the mistake of using a formula that groups all customers
  together. These include profitable and unprofitable customers. If you can't
  separate profitable from unprofitable customers, how can you develop
  strategies to retain your profitable customers while either firing your
  unprofitable customers or making them more profitable?
  
  Several books point out more sophisticated strategies for calculating CLV,
  combined with strategies for increasing customer profitability. One is
  ProfitBrand: How to Increase the Profitability, Accountability and Sustainability
  of Brands by Nick Wreden. It was named as the best business book of 2005
  by Booz Allen Hamilton. Another is 50+ Marketing Metrics Every Executive
  Should Know. Pepper & Rogers' book is good, but it may be a bit theoretical
  for businessmen in the trenches.