How do you associate a value to a user as his customer lifetime value (CLV)?
Assuming a situation where you can associate a value with him for each month, how do you calculate his Life-Time-Value ? Is Life-Time-Value associated with churn rate ?

This question posed on 09 February 2004


Customer lifetime value, also known as CLV or LTV, represents the net present value of profits, coming from the individual customer, which creates a flow of transactions over time. Companies can look at their investments in terms of cost per sale, rate of customer retention, and also conversion of prospects. CLV is,then, used as a convenient yardstick to measure performance; however, it has tended to become a bit too much of a 'holy grail' for corporate, marketing, and sales executives, to the extent that entire conferences and seminars are often devoted to helping optimize it.

marketing direct.net - IEMD - la lettre d’information du marketing ... -
... La valeur du client ou de la durée de vie client (Lifetime Value) est un concept clé en marketing relationnel. Cet article développe, synthétise et ...
www.marketing-direct.net/fr/iemd_lettre.asp

Bienvenue chez ISS-Paris - [ Translate this page ]
... Analyse et modélisation du COMPORTEMENT CLIENT. Appétence produit; Durée de vie client; Valeur économique client. CRM TOUS SECTEURS. ...
www.iss-paris.com/index2.asp?id1=3

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Note added at 1 hr 1 min (2005-03-06 02:34:10 GMT)
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too late here-valeur de la durée de vie client.

Just another suggestion.