Case Detail

Case Summary

Using Customer Relationship Management to Analyze the Lifetime Value of a Customer

Case Number: 7-312-500, Year Published: 2012

HBS Number: KEL695

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Authors: Julie Hennessy; Evan Meagher

Key Concepts

Consumer Marketing, Customer Relationship Management, Financial Analysis, Marketing, Marketing Planning, Customer Acquisition Cost and Customer Lifetime Value

Abstract

This technical note provides an update on the use of customer data in marketing organizations and discusses how calculations of customer acquisition costs are made. It introduces the concept of customer lifetime value and provides examples of how it is calculated and how it is used. If desired, this reading is good preparation for students completing the Kellogg exercise "Maru Batting Center: Customer Lifetime Value," Case #3-112-003.

Learning Objectives

After students have completed this reading, they will understand how to calculate and use calculations of customer acquisition cost and customer lifetime value.

Number of Pages: 9

Extended Case Information

Teaching Areas: Marketing