Emory University marketing professor Dan McCarthy posted a 24-slide Powerpoint deck titled A general framework for customer lifetime value [CLV] as well as a CLV taxonomy spreadsheet.
“Many people who say LTV actually mean HV [historical value]”
“CLV and PAV [post-acquisition value] are very often confused with one another.”
Undiscounted CLV “overestimates vlaue of customers because it does not acount for the time value of money.”
“While CLV is conceptually the same for all businesses, different dynamics for subscription and non-subscription business models motivate different modeling approaches.”
Powerpoint: A general framework for customer lifetime value [CLV]
Excel: CLV taxonomy spreadsheet.