Customer Lifetime Value - Simplified Models

Simplified Models

It is often helpful to estimate customer lifetime value with a simple model to make initial assessments of customer segments and targeting. Possibly the simplest way to estimate CLV is to assume constant and long-lasting values for contribution margin, retention rate, and discount rates, as follows :

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Other articles related to "simplified models":

Simplified Models - Real Gas
... Real gas effects include those adjustments made to account for a greater range of gas behavior Compressibility effects (Z allowed to vary from 1.0) Variable heat capacity (specific heats vary with temperature) Van der Waals forces (related to compressibility, can substitute other equations of state) Non-equilibrium thermodynamic effects Issues with molecular dissociation and elementary reactions with variable composition ... For most applications, such a detailed analysis is excessive ...

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