
The Relationship-Based Enterprise ◾ 53
e Customer Lifetime Value (LTV) is easier to predict if it incorporates recurring number
of the corresponding product’s use cycle(s). For instance, if the average use cycle of a vehicle cost-
ing $20,000 is 5years, the CV for a single vehicle–owning customer with the relevant customer
lifetime of about 40years may range between $140,000 and $200,000. e LTV of this customer
will be much larger because of additional values representing warranty, maintenance, repair, and
other services during the use cycle of a vehicle.
1.2.7 Customer Value Management (CVM)
In the process of reorienting the business around ...