Tag Archives: LTV

STOP! – Understand and Apply Growth Curves Correctly

Growth curves are a critical part of many different disciplines including the physical disciplines, however, many business,  with the exclusion of financial companies, tend to neglect growth curves due to the preference of simpler, easy to implement linear lines. They are often misunderstood and when incorrectly applied,  lead to very divergent results. If used properly, however,  they are a great way to understand long term behavior of business activity. This article presents a brief analysis of a few different curves and compares them to a linear approach and further examines their application.

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Why Lifetime value (LTV) calculations need Data Science 

Lifetime Value (LTV), sometimes referred to as Customer Lifetime Value (CLTV), is a technique used by businesses to predict the net profit of the entire future relationship with a customer. LTV is best thought of at a high-level as simply Total Customer Revenue – Total Customer Costs. Two key components to recognize and understand regarding LTV are the fact some customers hold more value than others and a customer is not just a single transaction but rather a relationship far more valuable than just a one-time deal. Continue reading Why Lifetime value (LTV) calculations need Data Science