The One Number To Predict Revenue (Part 7)

NPR as we have discussed is a bottom-up way of predicting future revenues. It starts with the actions of a single customer. Will that customer stay? Will that customer spend? Will that customer churn? Past actions as computed through an RFM (recency frequency monetary value) grid help compute the probabilities for what a single customer … Continue reading The One Number To Predict Revenue (Part 7)

The One Number To Predict Revenue (Part 5)

Before we discuss the power of Net Predicted Revenue (NPR) as marketing’s magic number and the one number which according to me ‘solves marketing’, let’s start with the basics. A company has customers. What it knows for sure are its past transactions with these customers. Aggregate all these transactions in a specific period and you … Continue reading The One Number To Predict Revenue (Part 5)

The One Number To Predict Revenue (Part 4)

It was then that I re-read an article by Daniel McCarthy and Peter Fader in the January-February 2020 issue of Harvard Business Review about Customer-based Corporate Valuation (CBCV). This excerpt stood out: Recognizing that every dollar of revenue comes from a customer who makes a purchase, CBCV exploits basic accounting principles to make revenue projections … Continue reading The One Number To Predict Revenue (Part 4)