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  2. Customer lifetime value - Wikipedia

    en.wikipedia.org/wiki/Customer_lifetime_value

    Customer lifetime value can also be defined as the monetary value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship. [1] Customer lifetime value is an important concept in that it encourages firms to shift their focus from quarterly profits to the long-term health of their ...

  3. Customer retention - Wikipedia

    en.wikipedia.org/wiki/Customer_retention

    Customer lifetime value enables an organization to calculate the net present value of the profit an organization will realize on a customer over a given period of time. Retention Rate is the percentage of the total number of customers retained in context to the customers that approached for cancelation.

  4. Customer acquisition cost - Wikipedia

    en.wikipedia.org/wiki/Customer_acquisition_cost

    Customer lifetime value expresses the monetary value that a customer is worth to the company in the course of a customer relationship. If the ratio of LTV to CAC is now calculated, different values can result. 1:1 – The company loses money (if we take the cost of providing the service into account)

  5. The Customer Lifetime Value Equation: Will It Pay Off for ...

    www.aol.com/news/2011-12-11-the-customer...

    Amazon.com (NAS: AMZN) will lose money on each $199 Kindle Fire it sells, but hopes to make back that money and more on tablet users who are expected to spend more than other customers. Sprint ...

  6. Customer equity - Wikipedia

    en.wikipedia.org/wiki/Customer_equity

    Customer equity is the total combined customer lifetime values of all of the company's customers. [1] It is calculated by multiplying the number of customers by the average value of each customer. Customer equity is important because it reflects the potential future revenue that a company can generate from its existing customer base.

  7. Customer Profitability Analysis - Wikipedia

    en.wikipedia.org/wiki/Customer_Profitability...

    Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time ...

  8. Relationship marketing - Wikipedia

    en.wikipedia.org/wiki/Relationship_marketing

    A technique to calculate the value to a firm of a sustained customer relationship has been developed. This calculation is typically called customer lifetime value , a prediction of the net profit of a customer's relationship with a company.

  9. Customer profitability - Wikipedia

    en.wikipedia.org/wiki/Customer_profitability

    Customer profitability (CP) is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period. According to Philip Kotler, "a profitable customer is a person, household ...

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