Sizing Image

062: Peter Fader, Wharton School – How To Calculate Customer Lifetime Value & What Customer Centricity Really Looks Like

Posted by Austin Brawner on February 26, 2015

We can think of very few things more important for an ecommerce business owner than determining what a customer is worth to an organization over their business lifetime.

There is no one better in the world at calculating customer lifetime value than Peter Fader.

Peter Fader is Professor of Marketing at the Wharton School of the University of Pennsylvania and the author of Customer Centricity: Focus on the Right Customers for Strategic Advantage.

His expertise centers around the analysis of behavioral data to understand and forecast customer shopping/buying activities and calculating customer lifetime value. He works with firms from a wide range of industries, such as consumer packaged goods, interactive media, financial services, and pharmaceuticals.

Fader’s work has been published in a number of leading journals in marketing, statistics, and the management sciences, and he serves on the editorial boards of many of them. In 2009, Fader was named a “Professor to Watch” by the Financial Times.

Key Takeaways from the Show

  • Stop using weak proxies to determine CLTV
  • Finding your growth through your customers
  • Responsiveness is not customer centricity
  • Why Apple is not customer-centric, but Harrah’s entertainment is
  • What customer lifetime value ISN’T
  • The “Holy Trinity” of customer lifetime value
  • Raising your quantitative literacy
  • Learn the “Buy Till You Die” customer lifetime value model

Links / Resources

Subscribe & Review

To get more awesome Ecommerce Influence content sent directly to your device and into your ears as they become available, you can easily subscribe by clicking on either one of the subscribe buttons below:

Also, ratings and reviews on iTunes (hopefully 5-stars!) help us tremendously and we’re very grateful for them. We do read all of the reviews and we’ll answer your questions or comments on future episodes.


Austin & Chad!

Form Image

Ecommerce Founder's Growth Pack

Enter your email to get our proven resources that will help you achieve massive growth without the burnout.

Please enter a valid name and email