Customer Relationship Management (CRM) & Customer Lifetime Value
CLV estimates expected discounted contribution across customer life.
Cheat sheet
CLV estimates expected discounted contribution across customer life.
What to check first
Use original cohort survival and exclude fixed costs consistently.
How to make the call
Test sensitivity to later survival and fulfilment costs before increasing acquisition spend.
Google Analytics · Funnel exploration · further reading for crm & analytics
Indian practice case
Fictional scenario
A Bengaluru subscription earns ₹200 monthly contribution and survival is 100%, 80% and 60% over three months. CAC is ₹300.
Reveal the step-by-step solution
- Diagnose the problem.
Use original cohort survival and exclude fixed costs consistently.
- Work through the evidence.
Undiscounted three-month CLV is ₹480 before CAC and ₹180 after CAC.
- Recommend and validate.
Test sensitivity to later survival and fulfilment costs before increasing acquisition spend.
More Indian cases
Interview question
How would you use customer relationship management (crm) & customer lifetime value to make the decision in this case? Explain which data you need first and what would change your recommendation.
See what a strong answer includes
Undiscounted three-month CLV is ₹480 before CAC and ₹180 after CAC. Test sensitivity to later survival and fulfilment costs before increasing acquisition spend.