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Notes
- 1.
We typically include acquisition cost (AC) for yet-to-be-acquired customers. To estimate the CLV for an already acquired customer, this cost is sunk and is not included in the CLV calculations.
- 2.
This expression holds only if (1+i) > r(1+g).
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Gupta, S., Lehmann, D.R. (2008). Models of Customer Value. In: Wierenga, B. (eds) Handbook of Marketing Decision Models. International Series in Operations Research & Management Science, vol 121. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-78213-3_8
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