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Customer lifetime value can also be defined as the monetary value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship. [1] Customer lifetime value is an important concept in that it encourages firms to shift their focus from quarterly profits to the long-term health of their ...
For example, some of the performance metrics provided for the employee organizational element include average customer review, customer retention rate, sales per customer/spending rate, average quantity per customer order, order frequency, average number of orders per customer, and average customer lifetime value.
Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time ...
Amazon.com (NAS: AMZN) will lose money on each $199 Kindle Fire it sells, but hopes to make back that money and more on tablet users who are expected to spend more than other customers. Sprint ...
Customer acquisition cost (CAC) is the cost of winning a customer to purchase a product or service. As an important unit economic, customer acquisition costs are often related to customer lifetime value (CLV or LTV).
Customer equity is the total combined customer lifetime values of all of the company's customers. [1] It is calculated by multiplying the number of customers by the average value of each customer. Customer equity is important because it reflects the potential future revenue that a company can generate from its existing customer base.
Customer profitability (CP) is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period. According to Philip Kotler, "a profitable customer is a person, household ...
I just switched from paying T-Mobile $198 a month for two lines (not paying for anything else!) to metro (owned by T-Mobile using the same network) and am now paying $45 a month. *that* is the ...