INMA_A01.QXD

There are different degrees of sophistication in calculating LTV. These are indicated in
Figure 6.10. Option 1 is a practical way or approximate proxy for future LTV, but the true
LTV is the future value of the customer at an individual level.

APPROACHES TO IMPLEMENTING E-CRM

Figure 6.9 Activity segmentation of a site requiring registration

New user (registered within last 60 days)

(a) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

3

Vi

sitor

se

ss

ion

s

2

1

0

Active user (has used within last 60 days)

(b) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

6

Vi

sitor

se

ss

ion

s

4

2

0

Dormant user (has not used within last 60 days)

(c) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

3

Vi

sitor

se

ss

ion

s

2

1

0

Inactive user (registered, but not used)

(d) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

1

Vi

sitor

se

ss

ion

s

0.5

0

Figure 6.10Different representations of lifetime value calculation

Future

Segment

1

Individual

Historic

2

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