Customer Lifetime Value: A Stairstep Approach to Growing Profitably

摘要

I've been asked how Customer Lifetime Value (CLV) can be used to help drive profitable growth. You can think of CLV as the value a customer brings to your business from first interaction to last transaction, which could span decades in a relationshipbusiness like ours. Although it's a farrul-lar concept, its lightly used at most dealerships.You can find many variations of customer value measurement depending on business type and industry, which can be computed for a specific customer to an entire customer segment. Arthur Hughes ofthe Database Marketing Institute shares Alan Weber's CLV variation that is a good fit for equipment dealers (Google "Customer Value Index Weber"). I'll condense for brevity here.