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customer lifetime value, nice

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1 What is Customer Lifetime Value? CV - Current Value Current value to date of customer PV - Potential Value Remaining potential value of customer - sometimes called Residual Value History-to-Date RFM, Product Affinity, Longevity, ROI, Etc. Propensity Measures Redemption, Response, Brand Switches, Defection, ROI, Etc. Observation Date CV = OBSERVATIONAL PV = PREDICTIVE CLTV = CV + PV

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Page 1: CUSTOMER LIFETIME VALUE, nice

1

What is Customer Lifetime Value?

CV - Current ValueCurrent value to date of customer

PV - Potential ValueRemaining potential value of customer - sometimes called Residual Value

History-to-Date RFM, Product Affinity, Longevity, ROI, Etc.

Propensity MeasuresRedemption, Response, Brand Switches, Defection, ROI, Etc.

Observation Date

CV = OBSERVATIONALCV = OBSERVATIONAL PV = PREDICTIVEPV = PREDICTIVE

CLTV = CV + PV

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