COMPOSITE CONTRIBUTION PROFIT (CCP) AKA CUSTOMER LIFETIME VALUE (CLV) FOR A RETAIL BUSINESS
Keywords:
Customer Lifetime Value (CLV), Composite Contribution Profit (CCP), Retail Analytics, Customer Segmentation, Predictive ModelingAbstract
This article explores the concepts of Composite Contribution Profit (CCP) and Customer Lifetime Value (CLV) in the retail industry, examining their evolution, calculation methodologies, and practical applications. It traces the historical development of these metrics from simple formulas to complex predictive models, highlighting the shift towards a more holistic view of customer value. The article discusses data requirements, calculation models, and customization strategies for different retail formats. It presents case studies of successful implementations, addresses common challenges, and proposes solutions. Finally, it explores future trends, including the role of advanced analytics and AI, and the impact of evolving consumer behavior on CCP/CLV models. The article provides numerical data and research findings to underscore the significant impact these metrics can have on retail profitability and customer retention.
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