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)

Parsing Long-Term Value

Anytime you work on a long-term value project, you come to an interesting realization.  Customers generate their own value, largely due to l...

  • 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...
  • Retail
    Yeah, that's a lousy picture. Too bad. Today is essay day. If you don't want to read something long, stop here. I spend a...
  • An Example
    Say you manage a paid search program. Last month you spent $100,000 and the following happened. Cost = $100,000. Clicks = 200,000. Co...