Dating a geek tips
The more accurate way to measure is to focus on what is known as the Unit Contribution Margin, which we’ll call marginal profit for short.
Calculating marginal profit is simple in many industries.
When people apply common sense and experience to non-scientific evidence, the process can often yield extremely positive results.
Much of the reason for this non-geek guide to Customer Lifetime Value is the understanding that, even if you don’t whip out the slide rules and try to create a scientifically sound model, spending time on each component of the CLV model can be incredibly instructive.
The Customer Lifetime Value calculation can be an extremely complex undertaking.Product companies can also have variable “labor” per unit, if for instance, there are commissions paid on sales.For consultants or solopreneurs, the calculation can be tricky.The tendency when thinking about the lifetime value of a customer is to focus on the revenue the customer brings in over their lifetime.However, focusing on revenue will almost always overstate the value of the customer.