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The Art & Science of the E-commerce Consumer Equity Model

The Art & Science of the E-commerce Consumer Equity Model

Why It’s the Real MVP of Marketing

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Tony Long
Jan 28, 2025
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Future Shopping
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The Art & Science of the E-commerce Consumer Equity Model
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Among the many ways that the finance department enriches the health of the business is by applying computations that help chart the path forward for the business. One of these is the computation of Customer Lifetime Value (CLV), or how much revenue can the business expect from a single customer over the lifetime of their loyalty to the brand and/or the business. We have addressed this as far back as 2020 both in the magazine and in the Fórum talks we have shared. CLV is great for enabling the business to expand its footprint with new store locations, or whether or not to grow laterally by offering new products that had previously been out of scope for the core business: Uber expanding into food delivery.

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