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Creating a customer value framework, which includes calculations of Customer Lifetime Value (CLV), is an initiative that is extremely valuable to the Digital Executive. Here are some thoughts and a framework on CLV, a critical component of a Customer Value Framework.

This also is a part of obsessing over Customers. When you spend time understanding the value of your Customers and creating a framework for increased value, you are the “real” digital executive.

We all need to understand where to focus our limited sales and marketing dollars. We also need to inform our digital initiatives for a better customer experience.


Calculating CLV provides many advantages. First, in a general sense, it aids in developing a thorough understanding of the potential value of customers. Second, it helps develop profiles for desirable customer groups that can then be leveraged in customer acquisition efforts. Finally, CLV helps differentiate between the values that different groups of customers bring to an organization and provides a consistent way of managing the existing customer base.

via Customer Lifetime Value: A Framework for Assessing Marketing Resource Allocations