Calculating Customer Lifetime Value In B2B

January 1st, 2018

Lisa Nakano

Summary

Differences in customer value are dramatic in B2B, where most companies recognize a large share of revenue from a small group of customers. Few B2B companies use lifetime value analysis in their marketing strategy, in part because traditional models require adjustment for use. Unlike B2C, where “who is a customer” boundaries are clear, B2B requires first determining the focus for calculations, then modeling and adding qualitative factors. In this report, we explain what goes into calculating LTV in B2B, and how it differs from B2C.

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