Background Note | HBS Case Collection | August 2002 (Revised November 2016)

Customer Profitability and Lifetime Value

by Elie Ofek


Introduces the central concepts involved in determining customer lifetime value, with detailed analysis and examples from the realm of direct marketing. Implications for marketing strategy and customer relationship management are briefly discussed.

Keywords: Customer Value and Value Chain; Customer Relationship Management; Customization and Personalization; Product Marketing; Sales; Marketing Strategy; Management Analysis, Tools, and Techniques; Consumer Products Industry;


Ofek, Elie. "Customer Profitability and Lifetime Value." Harvard Business School Background Note 503-019, August 2002. (Revised November 2016.)