November 19, 2018

Cumulative MLV

In our example, we have five years of data to analyze - and we can use that data to project MLV for a new item.

That's what I'm doing here with this graph.

After ten years, how much cumulative demand does an average new item generate?

About $2,500.

Armed with this knowledge, you can back into how many new items you need each year for your business to achieve corporate objectives.

More on the topic tomorrow.
-

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to: Post Comments (Atom)

Email Marketing and AOV

If you don't think you play a role in how a customer purchases, think again. Here's a common outcome. All Other Channels Items per O...

  • The MineThatData E-Mail Analytics And Data Mining Challenge
    It is time to find a few smart individuals in the world of e-mail analytics and data mining! And honestly, what follows is a dataset that y...
  • Payback Window
    When introducing the concept of Marketing Budget Experiments ( click here for pricing details ), I shared thoughts on payback windows. If yo...
  • Summer Schedule
    As usual, my summer schedule will dial back just a bit ... maybe three posts per week instead of five, sometimes four, sometimes more. And y...