Session 4 Segmentation And targeting III Flashcards
1
Q
Two sides to customer lifetime value (clv)
A
Customer experience
Customer profitability
2
Q
Drivers of CLV
A
Acquisition
Retention
Development
3
Q
CLV equation is=
A
(Profit)(retention probability)/(1+discount rate)^time
4
Q
How to acquire customers
A
Increase market size Increase market investment Increase effectiveness of acquisition programs Offer discounts and incentives Generate positive word of mouth
5
Q
What was moral of the Calyx case
A
Segment your customers and focus on reaching the profitable ones where you have an advantage
