Customer lifetime value: How to find the right calculation and prediction approach
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: SME; data science; data scientist; machine learning; marketing decisions; predictive modelling; small business; statistical models
Document Type: Research Article
Affiliations: 1: Technical Director at NU Solve, Newcastle University 2: Data Insight Manager, Tait Walker, Gosforth 3: Masters student in Mathematics and Statistics, Newcastle University 4: Director Strategic Analytics, servicepro GmbH
Publication date: June 1, 2022
- Applied Marketing Analytics is the major new professional journal publishing in-depth, peer-reviewed articles on all aspects of marketing analytics. Guided by an expert Editorial Board each quarterly 100-page issue - published both in print and online - features detailed, practical articles written by and for marketing analytics professionals on innovative thinking, strategies, techniques, software and applied research showing how major brands are collecting, interpreting and acting on marketing analytics, both around the world and across varied digital and non-digital marketing channels. Learn how to measure the effectiveness of your marketing initiatives more accurately, how this compares to your competitors, identify gaps in your marketing analytics program and what metrics that support sound marketing decision making - and add to the bottom line.
- Editorial Board
- Information for Authors
- Subscribe to this Title
- Forthcoming content
- Multi-user licences
- Contact us
- Ingenta Connect is not responsible for the content or availability of external websites
- Access Key
- Free content
- Partial Free content
- New content
- Open access content
- Partial Open access content
- Subscribed content
- Partial Subscribed content
- Free trial content