Customer Lifetime Value: Shaping Netflix's Marketing Strategy

This report provides an analysis of the impact of Customer Lifetime Value (CLV) on Netflix's marketing strategy. It identifies and calculates the margin, retention rate, discount rate, and CLV based on a provided Netflix data set. The report then describes the results of these calculations and discusses how CLV, in conjunction with metrics and analytics, provides an essential numerical dimension that can be analyzed and utilized for overall marketing strategy design. It also considers the role of changing technology and industry trends within Netflix’s fluctuating strategies, highlighting the indispensable role of CLV for marketers in making effective marketing decisions.

Customer Lifetime Value
The concept of [customer lifetime value] is nothing more than the
concept of present value applied to the cash flows of the customer
relationship.—Rajkumar Venkatesan et al. (2015, p. 134)
Customer lifetime value (CLV) is an indispensable tool for marketers to
employ in making effective marketing decisions. In conjunction with
metrics and analytics, CLV provides an essential numerical dimension
that can be analyzed and utilized for overall marketing strategy design.
To prepare for this Assignment, review the Netflix data set and Chapter
11 in Venkatesan et al. (2015) provided in this week’s Readings, and
consider the role of analytics and CLV in creating an effective
marketing strategy. Be sure to consider the role of changing
technology and industry trends within Netflix’s fluctuating strategies.
Submit by Day 7 a 1-to-2 page analysis on the impact of CLV on the
marketing strategy for Netflix. Your analysis should include the
following:
Identify the calculated margin, retention rate, discount rate,
and CLV based on Netflix data set.
Describe the result of the calculations.
General Guidance on Assignment Length: This Assignment should
be 1-2 pages, double-spaced, excluding a title page and references.
Reading:
Venkatesan, R., Farris, P., & Wilcox, R. T. (2015). Cutting-edge
marketing analytics: Real world cases and data sets for hands
on learning. Upper Saddle River, NJ: Pearson Education, Inc.
Chapter 11, “Netflix: The Customer Strikes Back” (pp.
144–152)
http://dmanalytics.org/bookdatasets/