Marketing by the Goats

Customer Lifetime Value

100

In the Simple CLV formula, what factor represents how long someone remains a customer

Years as a customer

200

If someone stays with a company for 5 years, what number would be used for the "Years as a customer" part of CLV

5

300

A customer spends $10 per purchase, makes 4 purchases per year, and remains a customer for 3 years. What is their CLV 

What is 120

($10*4*3)

400

Customer A stays with a company for 2 years.   Customer B stays for 8 years. Assuming everything else is equal, which customer has the greater CLV?

Customer B

500

CLV= Average Purchase Value * Number of Purchases per year * 

Years as a customer.

Customer Needs

100

A company discovered that customers want faster delivery. What has the company learned about its customers?

Customer Needs

200

Why should Marketers understand customer needs before creating a product?

So Marketers create a product that actually satisfies customer needs.