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

Lock

Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership Arrow with stem

Measure Category:
Supplemental Information
Measure ID:
106159
Total Sample Size:
80 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
Yes

Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are dollars.

Back to Top

Customer lifetime value (CLV) for your retail operation

Key Terms

Back to Top

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.

Measure Scope

Back to Top

Cross Industry (7.3.1)

  • 3.1.1.1 - Conduct customer and market research (10108)
    • 3.1.1.1.1 - Understand consumer needs and historical behaviors (10114)
    • 3.1.1.1.2 - Predict customer purchasing behavior (21424)
  • 3.1.1.2 - Identify market segments (10109)
    • 3.1.1.2.1 - Determine market share gain/loss (10115)
  • 3.1.1.3 - Analyze market and industry trends (10110)
  • 3.1.1.4 - Analyze competing organizations, competitive/substitute products/services (10111)
  • 3.1.1.5 - Evaluate existing products/services (10112)
  • 3.1.1.6 - Assess internal and external business environment (10113)