Question

Topic: Research/Metrics

How To Calculate Ltv For Telco Business

Posted by Anonymous on 7/17/2004 at 2:46 PM ET 250 Points
I am in charge of delivering a practical Customer Life Time Value Formula for my organization.

As an incumbent Telco operator, my company is just making a shift from a product/service based operation, to a market, customer centric strategy. Our IT organization is striving to support this paradigm shift but data quality, lack of system integration, and corporate culture limitations require practical and feasible solutions. Our inhouse CRM is just being deployed but we need to analyse CLTV based on an ARPU approach.

We have been working on a formula... a high level formulation would be: CLTV = ARPU + PARPU + CSV. ARPU = Average Revenue per User
PARPU = Potential ARPU
CSV = Customer Strategic Value

We would like to review our approach and hear suggestions for alternate CLTV corporate formulations (telco preferably).

Thanks for your help.

Gabriel Amorocho
BI Analyst - Marketing Department
ETB
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RESPONSES

  • Posted by Blaine Wilkerson on 7/17/2004 at 3:11 PM Accepted
    You know, this is a very interesting topic that falls in the range of areas in which marketers are trying to find objective methods/formulas to apply.

    In short, there is not a defenitive answer. Not here at least.

    Check out www.crmguru.com and https://searchengineformarketers.com to see if you can find some more specific info.

    I hope this helps!

    Good Luck!
  • Posted by bobhogg on 7/27/2004 at 9:16 AM Accepted
    Gabriel...

    Here's another link that you may find useful:

    https://www.jimnovo.com/LTV.htm

    If you explore this site I'm sure you'll find some information that helps!

    Bob
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