SDN Blogs: when rubber hits the road

when rubber hits the road
2009-07-07 00:34:06 Shuki Idan

Business Card [Reply]

1. "B2B and B2C needs two very different models" - you are right, but more than that => it is always an approximation so beyond B2C and B2B - different industries and different organizations use differnt models for v(t) and s(t).
2. "In the long term every one is dead" - again you are right. And it is more complex than because at each moment and with each action the componnets of the equation change. But still in the short term it is useful and I will try to put it to some framework in a future posting.
3. "gross figure or a net figure" - if you want to maximize margins it should be a net figure and of course the cost of actions, such as marketing, sales and service should be factored in.

Weblog:	The Money or Your Life - Some Reflections About Lifetime Value (LTV)
Subject:	when rubber hits the road
Date:	2009-07-03 11:20:19
From:	Vijay Vijayasankar Business Card


I think it is pretty hard to do this in practice . 1. B2B and B2C needs two very different models, since definition of lifetime varies. 2. "In the long term every one is dead" - which means we cannot fund on marketing with abandon thinking of future value. Our ability to predict is sharply lowere as we tend from zero to infinity. 3. I never fully understood if value is a gross figure or a net figure (as in does LTV already consider the cost to get that value). Without cost factored in over the same time horizon, it doesn't mean much to look at LTV in itself.