How do we begin to calculate a customer lifecycle for a company? Do we start with calculating what the customer lifecycle should be for each product the company has or vice versa?

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Customer lifecycle is, obviously, different for each product and service. More importantly, though, individual customers' purchase and use activity define the lifecycle. If you can evaluate lifecycle from both an individual and aggregated customer basis, rather than on a product basis (which may be considerably more fickle and transitory), your results are likely to be much more stable and predictable over time.

This was first published in May 2003

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