Customer lifetime value (CLV) is one of the most misunderstood or ignored concepts in marketing, but understanding it will up-level your craft & give you a seat at the strategy table
CLV is like teenage sex, often talked about but there's not much action.
My experience in public companies is that CFOs like the CLV concept but are influenced by the CEO's monomaniacal focus on quarterly results. As a result it's only the more enlightened CFOs who are willing to fund marketing to take a longer term view of the business by adopting CLV as a strategic metric/driver.
Thanks for the flashback to graduate school, where I spent many many hours calculating the present value of future cash flows at the corporate level, to come up with company valuations.
CLV is like teenage sex, often talked about but there's not much action.
My experience in public companies is that CFOs like the CLV concept but are influenced by the CEO's monomaniacal focus on quarterly results. As a result it's only the more enlightened CFOs who are willing to fund marketing to take a longer term view of the business by adopting CLV as a strategic metric/driver.
Thanks for the flashback to graduate school, where I spent many many hours calculating the present value of future cash flows at the corporate level, to come up with company valuations.