The resource presented in this paper introduces and contextualises the teaching of Customer Lifetime Valuation (CLV) to management accounting students. CLV is a relatively recent innovation. It involves calculating the present value of expected net cash flows generated over the lifetime of an...

This paper examines the calculation of customer lifetime value (CLV). Two case studies from Australasian practice are used to describe how CLV is calculated. These case studies reveal that customer retention rates, customer acquisition costs and the present value of future expected base profits...