MGT 3300 Lecture Notes - Lecture 8: Taco Bell, Marketing Strategy, International Wheelchair And Amputee Sports Federation
Document Summary
Customer lifetime value is the total stream of purchases that a customer could contribute to the company over the length of the relationship. Recall from chapter 1 that developing relationships with satisfied customers leads them to buy more over time. Over a customer"s lifetime, this can add up. Consider a customer of fast food restaurant taco bell. Bell even just once a month during their youth, this person could purchase worth of fast mexican food before they turn 18. This assumes about per visit, leading to about for 12 years a year from age 6 18. At age 18, consumption could double or triple or more, as college students tend to eat more cheap, fast food. Possibly resulting in purchases of a year during that time another over four years. Later as an adult consumption may increase if this person has children and takes them to taco bell.
