Target Audience · Segment value · Component
The ranking
Segments by contribution, held against the ranking by revenue — because where the two orders differ, effort is in the wrong place.
The deliverable
What it is
The two rankings differ in most organisations, and the difference is where the misallocated effort is. Sales attention follows revenue; profit follows contribution.
The ratio of lifetime value to acquisition cost is the standard summary, and its usefulness depends entirely on both inputs being honest.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The ratio
Lifetime value against acquisition cost, per segment.
3 attributes: Value to cost ratio · Payback period · Segment
LearnThe two orders
The revenue ranking against the contribution ranking.
3 attributes: Revenue rank · Contribution rank · Divergence
Learn
A segment high on revenue and low on contribution is where most effort buys least return.
The other components in segment value
The lifetime value
What a customer in this segment is worth over the relationship — spend, margin and duration together rather than revenue alone.
LearnThe acquisition cost
What it costs to win one, fully loaded — because the reported figure excludes most of what winning a customer actually takes.
Learn