Marketing Analysis Toolkit: Customer Lifetime Value Analysis

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Note

Reference no. 9-519-S01

Spanish language

Subject category: Marketing

Authors: Thomas J Steenburgh (Harvard Business School); Jill Avery (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 2017

Version: 18 January 2017

Length: 10 pages

Data source: Generalised experience

Topics: Customer & client analysis; Customer acquisition; Customer churn; Customer relationship management; Customer relationship management tools; Customer retention; Focusing on customers; Market segmentation; Marketing; Marketing planning; Marketing strategy; Metrics; Return on investment; Strategic planning; Value chains

Share a link: https://casecent.re/p/166924

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Abstract

This is a Spanish version. Customers are increasingly being viewed as assets that bring value to the firm. Customer lifetime value is a metric which allows managers to understand the overall value of their customer base and relate it to three customer strategies firms employ: asset acquisition - attracting new customers to the firm, asset maximization - maximizing the value the firm extracts from each customer, and asset retention - retaining existing customers for the long term. The note gives students a foundation for analyzing marketing cases, as well as providing an analytical structure and process for completing a marketing plan. The note is accompanied by a free Excel worksheet which contains sample problems, prebuilt Excel models to calculate customer lifetime value, and charts and graphs which help visualize the results.