Wharton marketing professor Eric Bradlow makes a strong case for changing the definition of Customer Lifetime Value (CLV). The old-school definition of CLV involves capturing the entire relationship of a customer to an organization. Bradlow tells Knowledge@Wharton that the new definition of CLV should include "how a single customer's needs change over time." Bradlow used himself as a typical example: "He’s a professor, a radio show host, a business partner, a husband, a father, and a sports fan. What he’s looking for as a consumer largely depends on which role he’s filling." This means using "big data" to establish algorithms that help individualize marketing to each consumer... clearly a challenge for many marketers.
This post is brought to you by 123 eGuides, publisher of authoritative, affordable guides to help small businesses get the most from your marketing. Now available: The updated, revised Third Edition of the popular eGuide, Branding 123, that details a 3-part system for how small marketers can build a breakthrough brand. Included in the Third Edition are profiles of 5 small brands that grew up using techniques similar to those outlined in Branding 123. Read more about this eGuide here.