Models that actually work
Beyond the back-of-the-envelope formula (revenue × lifetime): BG/NBD, sBG and Gamma-Gamma, explained so you can apply them without a PhD.
The book
CLV: Customer Lifetime Value
Why some customers are worth more than others.
The practical, rigorous guide to measuring, predicting and multiplying the value of your customers. For marketing and business professionals who want to decide with data, not gut feeling.
Available in paperback and Kindle editions
What it's about
If you don't know what each of your customers is worth, you're making decisions blindfolded.
Customer Lifetime Value is the value of a customer over the whole of their relationship with you, and the most powerful tool for deciding how much to invest in acquiring, retaining and developing them.
But above all, it's the language you're missing: while the board talks about EBITDA and cash, marketing keeps talking about clicks and, without realising it, ends up left out of the room where the budget gets shared out.
This book takes you from concept to implementation with academic rigour and the down-to-earth approach a practitioner needs: from getting the calculation right to acquisition and retention decisions, all the way to turning CLV into a strategic metric capable of moving your company's valuation.
‘You won’t just know how to calculate a CLV: you’ll know how to defend it when someone calls it into question.’
What you'll learn
The CLV cube
Classify every customer by their value, their maturity and their churn probability. Eight segments, each with its own course of action.
From concept to your spreadsheet
A real case from start to finish, with resources in Python and in Excel to replicate every calculation, whether you code or not.
From the customer to your company's value
Add up the value of your customers and you get Customer Equity: the figure to anchor your valuation in front of investors with data, not hot air.
Inside the book
- 01Why CLV changes everything
- 02What Customer Lifetime Value is
- 03The contractual spectrum
- 04The data you need
- 05Retention and purchase models
- 06Predictive CLV models
- 07From prediction to segmentation
- 08Putting CLV to work in your organisation
