Understanding Net Present Value vs. Lifetime Value

Reading a LinkedIn article I came across the term Net Present Value (NPV). Wikipedia describes NPV as “the present value of money today compared to the present value of money in future, taking inflation and returns into account.” It’s However, I found the writer, Sallie Krawcheck’s, personal explanation more thought provoking: “the willingness to forgo earnings today, to invest smartly for more earnings tomorrow.”

Instead of applying to finances, economics and accounting, I started to think how NPV can be applied to marketing and customer relationship building. As marketers, we’ve been programmed to calculate something similar called a Customer’s Lifetime Value (LTV), the predicted net profit for the entire future relationship of the customer…but what about a prospect’s Net Present Value? Are they even worth acquiring? In the years to come, will they be worth more or less than they are right now?

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Understanding Net Present Value vs. Lifetime Value

Net Present Value

Reading a LinkedIn article I came across the term Net Present Value (NPV).  Wikipedia describes NPV as “the present value of money today compared to the present value of money in future, taking inflation and returns into account.” It’s However, I found the writer, Sallie Krawcheck’s, personal explanation more thought provoking: “the willingness to forgo earnings today, to invest smartly for more earnings tomorrow.”

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How’s Coke Doing with Marketing to Children in an Anti-Obesity Message?

by Kara Monson, Account Supervisor

Label Man

Admittedly I love a refreshing can of pop from time to time. This goes back to childhood for me. My Mom would limit me to one pop a day as a treat…and there was nothing better than an ice cold Pepsi. At that time you could routinely buy pop in bottles… Drinks always taste better when in a can or bottle, right?

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Generation C: The newest consumer segment and how to reach them through Mobile Advertising

Written by Kara Monson- Senior Account Executive

Reading the latest headlines, I came across an article about Generation C called: “Is Mobile Advertising the Key to Reaching Generation C?”  Named by Nielsen, Generation C includes those in the 18-34 year old age range based upon research from Radium One. How clever - The Generation C name reflects the connectivity to others and content through multiple devices. This age group is considered one of the most desirable to marketers, but has proved hard to capture.

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