Great overview, Tim! A common definition of CLV is central for any data-driven organization. Would love to hear your thoughts about how to define the „Value“ part as it can be a contentious point when defining CLV if it’s revenue, profit or something in between.
I guess "better" (more detailed) is always possible, but it's also important to start somewhere.
If you can make decent decisions based on simple:
"How many people buy a 2nd time after 3 months?" It's already a good starting point.
Then it also depends a bit on how different your gross margin is across products and services. It might not be worth the effort to integrate if it's quite similar.
Great overview, Tim! A common definition of CLV is central for any data-driven organization. Would love to hear your thoughts about how to define the „Value“ part as it can be a contentious point when defining CLV if it’s revenue, profit or something in between.
I guess "better" (more detailed) is always possible, but it's also important to start somewhere.
If you can make decent decisions based on simple:
"How many people buy a 2nd time after 3 months?" It's already a good starting point.
Then it also depends a bit on how different your gross margin is across products and services. It might not be worth the effort to integrate if it's quite similar.
The next post will be about actionability
It has to be gross margin (or some form of contribution margin), otherwise its not actually value!