Models of Lifetime Value (LTV) are designed for service providers with regular customers (banks, telecom, large retail, etc.). These companies can “appraise” their customers by considering not only their current contributions, but also their future contributions. In summary, it estimates the present value of each customer based on their lifetime relationship.
Cognatis developed a LTV calculation methodology that differs from regular methods adopted in the market, by establishing relationships and associations between the customer’s portfolio and corresponding LTV. Thus, it is possible to assume the full impact of actions like selling a new product or canceling the other in each customer’s LTV.