Much has been written about customer churn - predicting who, when, and why customers will stop buying, and how (or whether) to intervene. Employee churn is similar - we want to predict who, when, and why employees will terminate. In many ways, it is smarter to to focus inward on employees. For one thing, it is far easier for an company to change the operations or even the behavior of an employee, than that of a customer. As will be seen, employee churn can be massively expensive, and incremental improvements will give big results.
This article was written by Louis Columbus. Louis is currently serving as Director, Global Cloud Product Management at Ingram Cloud. Of the hundreds of areas big data and analytics will revolutionize marketing and sales, the following is an overview of those that are delivering results today. How prices are defined, managed, propagated through selling networks and optimized is an area seeing rapid gains. Attaining price optimization for a given product or service is becoming more possible thanks to advances in big data algorithms and advanced analytics techniques.
The Statsbot team estimated LTV 592 times for different clients and business models. We share our experience in this post and in a free ebook on how to calculate customer lifetime value with SQL without sophisticated statistical models. Customer lifetime value, or LTV, is the amount of money that a customer will spend with your business in their "lifetime," or at least, in the portion of it that they spend in a relationship with you. It's an important indicator of how much you can spend on acquiring new customers. For example, your customer acquisition cost (CAC) is $150, and LTV is $600.
"Ed Malthouse is one of the bright lights in marketing thought leadership. His insights are always useful, practical, and clear. This book is no exception. It offers real'tools you can use' to best manage the most valuable asset of any company: customers. This book provides a comprehensive yet practical way to best use customer information to better manage customer value to enhance firm profitability."