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)
The contribution to a company’s profit made by an individual customer or household over the total time period of the relationship with a company. By building loyalty over a long period of time and through multiple life events, there is an increased lifetime value of the customer to the company.
How much money a customer will spend with your company during his tenure as a customer; can also be defined as a customer's contribution to overhead and profit throughout all his years as a customer with your company.
The total profit or loss estimated or realised from a customer over the active life of the customer’s record.
The net present value of all future purchases expected from a customer. ("Net present value" means that future sales are discounted to take into account the fact that a dollar received tomorrow is worth less than a dollar received today.) Contributed by: MarcommWise Staff
The total estimated monetary worth of a customer to a business over the course of the relationship.
the cumulative sales to a customer throughout the 'life' of the customer less the cumulative costs to retain the customer.
Lifetime Value of the Customer determines the value of a customer to a firm, over the lifecycle of that customer. This removes the focus on individual transactions with customers and has become increasingly used with the developments of technology and market research, and thus the ability to focus on narrower target markets, even to the individual consumer in some cases. Lifetime Value is an important measure used for relationship marketing programs. Lifetime Value of Customers was a popular metric for internet firms as they built their customer bases.
Also known as LTV, Lifetime Value is the "run rate" of a customer's actual value.
FLAAR's definition of lifetime value refers to the lifetime value of the customer. In this regard, it is the value of the customer over the duration or length of time they conduct business with you.
The total amount that a customer will spend with a particular company during his or her lifetime.
This is the total value of a customer during their entire relationship with a company.
In marketing, the Lifetime Value (LTV) of a customer is the present value (usually expressed in currency) of future profits that can be derived from a customer based on the profits have been received from that customer in the past.