frequency. Some are more likely to renew, and others are significantly less likely to renew. As a result, when working to understand its overall customer equity, the company doesn’t just look at the average renewal rate of all of its customers; instead, it breaks those customers down into three customer segments, each grouped by their propensity to renew. This segmentation may on its face seem to do little to change the average renewal rate, the expected lifetime of a customer, or a predictive CLV. But as it turns out, the difference is a fairly significant one-and quite illustrative, I think,
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