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Customer Lifetime Value

on 02 December 2009. Posted in Software Models

What you put in...	What you get out...
Observed churn rates Customer acquisition cost Number of customers/segments Gross margins by segment Customer transition probabilities across segments	Value of current customer base Time required to recoup customer investments ROI on customer/segment investments Size and profitability of customer segments over time; sensitivity to marketing investment plan

Customer Choice (Logit) Model

on 02 December 2009. Posted in Software Models

What you put in...	What you get out...
Customer's choice data for alternative offerings Customer ratings of alternative offerings on their key attributes	Purchase probabilities, predicted and observed choices of customers Factors influencing customer choice, including brand as well as performance attributes

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