{"id":3633,"date":"2024-10-10T19:34:35","date_gmt":"2024-10-10T19:34:35","guid":{"rendered":"https:\/\/www.enginius.biz\/index.php\/models\/lifetime-2\/"},"modified":"2024-10-14T18:37:53","modified_gmt":"2024-10-14T18:37:53","slug":"lifetime","status":"publish","type":"page","link":"https:\/\/www.enginius.biz\/index.php\/business\/models\/lifetime\/","title":{"rendered":"Lifetime value"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3633\" class=\"elementor elementor-3633\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c29af04 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c29af04\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2a9c489\" data-id=\"2a9c489\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-f741091 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f741091\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-f9de819\" data-id=\"f9de819\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f08d3e1 elementor-widget elementor-widget-image\" data-id=\"f08d3e1\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"370\" height=\"400\" src=\"https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/07\/placeit_lifetime_overview.png\" class=\"attachment-full size-full wp-image-1842\" alt=\"\" srcset=\"https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/07\/placeit_lifetime_overview.png 370w, https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/07\/placeit_lifetime_overview-278x300.png 278w, https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/07\/placeit_lifetime_overview-185x200.png 185w\" sizes=\"100vw\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-4ac10fa\" data-id=\"4ac10fa\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-13a4cb7 elementor-widget elementor-widget-heading\" data-id=\"13a4cb7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Lifetime value<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c7240a0 dark-para elementor-widget elementor-widget-text-editor\" data-id=\"c7240a0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>By measuring how customers move from one segment to another segment over time, this Enginius module helps predict the lifetime value of a customer based on which segment he or she belongs to today, as well as future sales, or the current value of the entire customer database as a whole.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-daafdb8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"daafdb8\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-6ff8fe7\" data-id=\"6ff8fe7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d64f62f elementor-widget elementor-widget-heading\" data-id=\"d64f62f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What you put in...<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a606573 elementor-widget elementor-widget-text-editor\" data-id=\"a606573\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>Observed churn rates<\/li><li>Customer acquisition cost<\/li><li>Number of customers\/segments<\/li><li>Gross margins by segment<\/li><li>Customer transition probabilities across segments<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-d427b9f\" data-id=\"d427b9f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4feb0a6 elementor-widget elementor-widget-heading\" data-id=\"4feb0a6\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What you get out...<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-61d17de elementor-widget elementor-widget-text-editor\" data-id=\"61d17de\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>Value of current customer base<\/li><li>Time required to recoup customer investments<\/li><li>ROI on customer\/segment investments<\/li><li>Size and profitability of customer segments over time; sensitivity to marketing investment plan<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-44338bc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"44338bc\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e14933c\" data-id=\"e14933c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9978601 heading elementor-widget elementor-widget-heading\" data-id=\"9978601\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Key features<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-ad39462 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ad39462\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-f25ff83\" data-id=\"f25ff83\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-72bb3d6 elementor-invisible elementor-widget elementor-widget-image\" data-id=\"72bb3d6\" data-element_type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;fadeInLeft&quot;}\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"400\" height=\"300\" src=\"https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_1.png\" class=\"attachment-large size-large wp-image-1924\" alt=\"\" srcset=\"https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_1.png 400w, https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_1-120x90.png 120w, https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_1-300x225.png 300w, https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_1-260x195.png 260w\" sizes=\"100vw\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-a0b03bb\" data-id=\"a0b03bb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f92761e elementor-widget elementor-widget-heading\" data-id=\"f92761e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Contractual or transactional<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6ea23be elementor-widget elementor-widget-text-editor\" data-id=\"6ea23be\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The lifetime value model can be calibrated with several options, such as the speed at which customers will churn (e.g., immediately -transactional- or at the end of contract period -contractual-). Discount rate can also be applied immediately or after one period.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-f5ae0af elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f5ae0af\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-1e0ebcc\" data-id=\"1e0ebcc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ae24f70 elementor-invisible elementor-widget elementor-widget-image\" data-id=\"ae24f70\" data-element_type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;fadeInLeft&quot;}\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"400\" height=\"300\" src=\"https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_2.png\" class=\"attachment-large size-large wp-image-1923\" alt=\"\" srcset=\"https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_2.png 400w, https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_2-120x90.png 120w, https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_2-300x225.png 300w, https:\/\/www.enginius.biz\/wp-content\/uploads\/2018\/08\/lifetime_feature_2-260x195.png 260w\" sizes=\"100vw\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-77de77d\" data-id=\"77de77d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-78a7c49 elementor-widget elementor-widget-heading\" data-id=\"78a7c49\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Customer acquisition scenario<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c4d5568 elementor-widget elementor-widget-text-editor\" data-id=\"c4d5568\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Customers churn over time, but they are also acquired and replaced. Enginius allows you to run multiple customer acquisition scenarios to simulate the impact of various acquisition strategies on the long-term value of a customer database.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-1e2cd2b heading elementor-widget elementor-widget-heading\" data-id=\"1e2cd2b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">About lifetime value<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2dd058a elementor-widget elementor-widget-text-editor\" data-id=\"2dd058a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Customer Lifetime Value (CLV) is a metric of a customer&#8217;s value to the organization over the entire history of the relationship. Short-term sales are a factor, but so are overall customer satisfaction, the churn rate in the segment, and the costs to acquire a new customer and retain an existing customer.<\/p><p>The model uses the following input:<\/p><p><strong>Segment Description<\/strong><\/p><ul><li><em>Number of Customers per segment<\/em>. As of today, how many customers does the company have in each segment?<\/li><li><em>Gross Margins<\/em> are the average margins that can be expected from a customer over each period (e.g., a year, a quarter), based on which segment this customer belongs to at the beginning of this period.<\/li><li><em>Marketing Costs<\/em> quantifies how much money the company spends per customer and per period, depending on which segment this customer belongs. Typically, active customers are followed more closely, receive more attention (e.g., direct marketing solicitations or sales representatives visits), and cost more to the firm.<\/li><\/ul><p><strong>Transition Matrix<\/strong><\/p><ul><li>The Transition Matrix summarizes the likelihood a customer will switch segments at each period. This matrix should be read horizontally, and each line sums up to 100% (since all customers need to go somewhere). In the above example, an &#8220;active customer&#8221; has a 75% likelihood of still being in the same segment next period, and 25% chance of switching to the &#8220;warm customer&#8221; segment.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c08a823 elementor-section-height-min-height elementor-section-boxed elementor-section-height-default elementor-section-items-middle\" data-id=\"c08a823\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7cd75c7\" data-id=\"7cd75c7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-19ca552 elementor-widget elementor-widget-heading\" data-id=\"19ca552\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Want to see Enginius in action and learn more about how Enginius can help you?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dcba5de elementor-align-center elementor-widget elementor-widget-button\" data-id=\"dcba5de\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.enginius.biz\/index.php\/business\/schedule-a-demo\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Contact us to schedule a demo!<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Lifetime value By measuring how customers move from one segment to another segment over time, this Enginius module helps predict the lifetime value of a customer based on which segment he or she belongs to today, as well as future sales, or the current value of the entire customer database as a whole. What you &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.enginius.biz\/index.php\/business\/models\/lifetime\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Lifetime value&#8221;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"parent":3629,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"yst_prominent_words":[978,990,982,105,603,525,149,461,67,441,375,994,167,979,986,110,602],"class_list":["post-3633","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/pages\/3633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/comments?post=3633"}],"version-history":[{"count":0,"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/pages\/3633\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/pages\/3629"}],"wp:attachment":[{"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/media?parent=3633"}],"wp:term":[{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.enginius.biz\/index.php\/wp-json\/wp\/v2\/yst_prominent_words?post=3633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}