Customer lifetime value: How to find the right calculation and prediction approach

Shirley Coleman, Daniel Walker, Mohammed Rahman-Chowdhury and Andrea Ahlemeyer-Stubbe
Additional contact information
Shirley Coleman: Technical Director at NU Solve, Newcastle University, UK
Daniel Walker: Data Insight Manager, Tait Walker, Gosforth, UK
Mohammed Rahman-Chowdhury: Masters student in Mathematics and Statistics, Newcastle University, UK
Andrea Ahlemeyer-Stubbe: Director Strategic Analytics, servicepro GmbH, Germany

Applied Marketing Analytics: The Peer-Reviewed Journal, 2022, vol. 8, issue 1, 16-25

Abstract: In this age of abundant data, there are special opportunities for companies to measure the value of their customers. Such analytical action can help inform business and marketing decisions. This article gives an overview of what is meant by customer lifetime value and describes four approaches to calculating its value. We compare the pros and cons of each approach and show how engaging with the measurement activity can be beneficial for your business. Finally, the article gives guidelines so that managers can decide which approach best fits their current situation.

Keywords: data science; statistical models; marketing decisions; data scientist; predictive modelling; machine learning; small business; SME (search for similar items in EconPapers)
JEL-codes: M3 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/7071/download/ (application/pdf)
https://hstalks.com/article/7071/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:ama000:y:2022:v:8:i:1:p:16-25

Access Statistics for this article

More articles in Applied Marketing Analytics: The Peer-Reviewed Journal from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().