MFG 2.0

MBA 101 -- Calculating Customer Lifetime Value? You Could Do Worse Than Starbucks

Everyone's favorite (or, at least by market size, most everyone's favorite) coffee chain gets a shout out via Fast Company for its CLV calculations.

As always, the devil's in the details -- in this case, the assumptions the number-crunchers are making about key variables such as average customer lifespan and retention rate. Since they're a retail operation, much of these assumptions will be different, but it's always good to be thinking about how much your customer is worth, as well as what you're doing to keep them around.

Read about it and see the handy infographic here.

TAGS: Innovation
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