Learning: ROI and Customer Lifetime Value


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Here are books and links that will give any marketer or techie a basic framework for how to truly measure financial value.

Valuation – Measuring and Managing the Value of Companies

The classic MBA book – still focused on “the primary goal of a company is to return value to shareholders” – but the math and financial framework provides one of the more accessible lessons on how to value a company.

Measuring Customer Lifetime Value

A tool provided by Harvard Business School Press. It includes the discounted cash flow time value of money within the tool. No algebra needed.

Managing Customers for Profit

Professor V. Kumar explains how Customer Referral Value is more useful and relevant than Customer Lifetime Value, and explains the difference, constraints, and limitations of our more traditional world view.

His site is filled with additional research, calculators, and links.