Determining Your Customers’ Lifetime Value
by Leeia Ladipoh
Published November 29th, 2007
One very important concept when it comes to determining your business model is deciding what the lifetime value of your customers is going to be. The concept of the customer lifetime value has long been a part of the business world, and it will come into play in virtually every segment of your business - from year to year budget projections to promotions and even customer support options. Simply put, customer lifetime value is how much money a customer will contribute to your business over the lifetime of your relationship with them, and it is always calculated in present dollars.... Read more
