How marketers can increase quantity of quality using customer lifetime value

(Originally posted on Medium.) Customer lifetime value has been an interest of mine for several years: cohort and survival analysis, revenue models, unit economics, and innovation through experiments. It is a fascinating space populated by smart people publishing new findings built on decades of research originating, in part, from database marketing thought leaders. But while the academic research…
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Startup stages and growth through unit economics

Startups go through phases just like people—you have to crawl before you walk before you run. Fred Wilson divides the startup lifecycle into three stages: While building product your team is singularly focused on executing vision and ensuring your product meets customers’ needs. You hear this called product-market fit or customer development but the process is basically the…
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Survival analysis to understand customer retention

Survival analysis is a branch of models used in medical studies to measure time to outcomes or patient duration and other disciplines have similar techniques (e.g. duration analysis in economics). These techniques are easily translated to customer analytics: BarryAnalytics provides an introduction to the application of survival analysis in retention modeling. Most churn analyses focus…
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RJMetrics launches e-commerce class

Jake Stein of RJMetrics just announced a 30-day e-commerce class which pulls together “the most valuable things we’ve learned from working with hundreds of e-commerce businesses.” The welcome email links to a report comparing traditional online retailers versus flash sale sites, with three noteworthy insights: Customer Value: first-year revenue increases more quickly on flash sale sites (+385% of first-month spend)…
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