Definitions for "LIFETIME VALUE"
Keywords:  flaar, spend, worth, profit, customer
A financial appraisal of the long-term profitability of new subscriptions sold through a particular promotion campaign. In this appraisal year-on-year costs (from new subscription and renewal promotions, magazine production, fulfilment and postage) are subtracted from year-on-year revenues (from new subscriptions, renewals, list rentals, cross-sales and advertising) to calculate a forecast lifetime value. The calculation is also known as “Source evaluation
This is the maximum value for all orders for this period.
measure of customer's value that shows that while a few transactions with a customer may not be profitable, over the long term that customer may be well worth retaining (p. 150)