Case Number: 7-312-500, Year Published: 2012, Revision Date: November 09, 2015
HBS Number: KEL695
Consumer Marketing, Customer Relationship Management, Financial Analysis, Marketing, Marketing Planning, Customer Acquisition Cost, Customer Lifetime Value
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.
After students have completed this reading, they will understand how to calculate and use calculations of customer acquisition cost and customer lifetime value.
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