Peer Review

Financial Value of Customer Satisfaction: Using a Lifetime Value Calculator

Material Detail page

Reviewed:: Jan 21, 2025 by Business

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Ratings

Overall Rating:

Content Quality:

Effectiveness:

Ease of Use:

Overview:

This online calculator can easily be used for an in-class demonstration of the value customer satisfaction and retention brings to a company. The activity should take about 10 minutes, and provides a nice, interactive demonstration of the lifetime value of a customer to a company. The online calculator uses the value and frequency of purchase, annual purchase rate, and referral information to calculate the lifetime value of a customer's purchasing power. This is a quick and easy way to demonstrate the value that customer loyalty and continued patronage can provide a company.

Type of Material:

Drill and Practice

Recommended Uses:

In class
Lecture
Homework assignments
Groups and role play assignments

Technical Requirements:

Google Chrome, Safari.

Identify Major Learning Goals:

Demonstrate how valuable customer retention is to a company
Demonstrate how long-term customer loyalty can provide financial revenue to a company

Target Student Population:

Upper-level marketing classes
Graduate business classes

Prerequisite Knowledge or Skills:

Students should have a basic understanding of marketing principles.
Students could also have sales, retail or consumer behavior skills.
Students should be have a basic understanding of customer loyalty and customer retention.

Content Quality

Rating:

Strengths:

The calculator is easy to access and easy to use.
The instructions are clear.
The reviewer used the calculator and the results were accurate.
Content is appropriate.

Concerns:

The calculator is at the very bottom of the page. It would be better if it was closer to the top.

Potential Effectiveness as a Teaching Tool

Rating:

Strengths:

Learning goals were identified on the site.
The author suggested uses for the calculator in class and assessment questions for students to consider.
The item promotes conceptual understanding.

Concerns:

The learning objectives were very basic.

Ease of Use for Both Students and Faculty

Rating:

Strengths:

Clear and accurate instructions for use.
The site is easy to navigate and was in working order at the time of review.

Concerns:

The calculator was at the very bottom. It might be better to move the calculator to the top of the page.

Other Issues and Comments:

The material is a great idea to use in a marketing or sales class to demonstrate customer retention and how companies determine the value of customers.
The calculator shows in real numbers what a customer is worth to a company.

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