Retail customer lifetime value
This measure calculates customer lifetime value (CLV) for the retail operation. CLV is defined by the following equation: Margin * (Customer Retention Rate / ((1 + Discount Rate) - Customer Retention Rate)); where Margin is the contribution after deducting variable costs including retention spending, Customer Retention Rate is defined as the number of customers who were active three years ago and are still active, divided by the number of customers who were active three years ago, and Discount Rate is the cost of capital used to discount future revenue from a customer. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process "Perform customer and market intelligence analysis".
Benchmark Data
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Learn about Membership| 25th | Median | 75th |
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Compute this Measure
Units for this measure are dollars.
Customer lifetime value (CLV) for your retail operation
Key Terms
Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.