For managers and marketers alike, the power to calculate what customers might be worth is alluring. That’s what makes customer lifetime value (CLV) so popular in so many industries. CLV brings both quantitative rigor and long-term perspective to customer acquisition and relationships. For all its impressive strengths, however, CLV suffers from a crippling flaw that blurs its declared focus.
Author: Michael Schrage | Source: Harvard Business Review | Subjects: Customer Related, Marketing / Sales