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evaluating customers' lifetime value

From: Vida J Morkunas <vida_at_direct.ca>
Date: Sat 01 Apr 2000 07:08:35 -0800

hi all,

I've been quietly lurking here for a few years, and
enjoying the discussions. What a terrific forum!

I work for a national click and mortar retail leader,
and was recently tasked with determining hard metrics
for customer lifetime value. I am looking for
reference articles and case studies that would help me
define a monetary model for aggregates of customers.

For example, customer X...

bought a total of $45,345.67 worth of products from us
and is in the Silver group of our loyalty program this
year and replied to 7 of our email surveys but only
took advantage of one email 10%-off coupon called
Customer service 5 times since January 2000 ... but
called 23 times since becoming a customer is subscribed
to our online newsletter returned packages twice tends
to buy high-margin products etc...

I have some metrics that the company considers
'important' (revenue, margin, calls to Customer
Service, etc). I am loathe to reinvent the wheel,
however, so I wonder if any o-a readers ever did such a
study for their clients, or for their employers, and
hope to learn some lessons from your experience.

Thank you in advance,

Vida.

Vida J Morkunas
Vida Morkunas and Associates
vida_at_direct.ca





Received on Sat Apr 01 2000 - 09:08:35 CST


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