Increasing Availability of Customer Lifetime Value Tools
CRM vendors are now providing the ability to calculate a customer lifetime value of a customer based on various criteria. One model offered by Worldtrak determines the customer lifetime value on a formula based on the recency, frequency, and monetary values for a customer.
Recency— amount of recent purchases by the customer.
Frequency— the frequency of purchases by a customer.
Monetary values— the monetary values of purchases by a customer.
Likely impact of this trend: The ability to track customer lifetime value and to segment customers more precisely for eventual offering of unique services and products depending on their current and perceived value.
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