Category: HBR

Customer Profitability and Lifetime Value Note 2002

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This case study analyzed customer profitability and lifetime value (LTV). The study utilized data from a recent study to reveal that customer profitability and lifetime value are correlated with business success, and that LTV represents the total amount of revenue generated from the customer after adding up incremental sales. LTV as a Measure of Business Success: Customer profitability is a measure of a company’s financial health, indicating how well a business generates profit from a particular customer group. Lifetime value, on the other hand, is a more comprehensive

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Customers’ profitability is directly linked to product pricing. Customers are willing to pay more for products with higher profitability. Customers are willing to pay less for products with lower profitability. Product pricing and profitability should be aligned to maximize lifetime value (LTV) for the customer. Product prices will change and be updated regularly, with an optimal price being identified. This will depend on several factors such as market conditions, competition, brand preference, and value proposition. Product pricing should always focus on maximum revenue generation while maintaining profitability. For instance,

Should a Pension Fund Try to Change the World

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Arcor Group and Sustainability Epilogue

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Goli Soda

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TikToks AI Strategy ByteDances Global Ambitions

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The Proxy Fight at ADP

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Seeding Growth in the Democratic Republic of the Congo 2013

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