Category Archives: Customer Value

False positives and false negatives in predicting customer lifetime value

  I found this 2008 article on the research of Edward Malthouse and Robert Blattberg very instructive.  Malthouse and Blattberg’s attempts to predict customer lifetime value consistently resulted in two types of errors: “A false positive occurred when the model … Continue reading

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Can courting so-so customers be good for business?

This Stanford Research outlines an instructive approach to Managing Dormant, Occasional, and inactive Customers.  The research concludes that: “Marketers often lavish attention on their best customers, but … it may be more cost effective to increase their spending on clients … Continue reading

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