PM.

CommunityGlossaryBlog


A

A/B Testing


Adopter Categories


Adoption Curve


Agile Methodology


Agile Product Roadmap


Analytics Tools


API Integration


Application Lifecycle Management


Audience Segmentation


B

Backlog Grooming


Behavior-Driven Development


Benchmarking


Benefits Realization Management


Beta Testing


Brand Positioning Strategy


Build-Measure-Learn Feedback Loop


Business Case Development


Business Intelligence Tools


Business Model Canvas


Business Requirements Document


Buyer Personas


C

Collaborative Product Development


Competitive Analysis


Concept Testing


Continuous Delivery


Conversion Rate Optimization


Core Product Metrics


Cost-Benefit Analysis


Cross-Functional Teams


Customer Acquisition Cost


Customer Development


Customer Experience Optimization


Customer Feedback


Customer Insights


Customer Journey Mapping


Customer Lifecycle Management


Customer Retention Strategies


Customer Segmentation


Customer Success Strategies


Customer Validation


Customer Value Proposition


D

Data Visualization Tools


Data-Driven Decision Making


Demand Forecasting


Design Sprints


Design Thinking


Development Sprints


Digital Product Management


Digital Transformation


Disruptive Innovation


E

Early Adopters


Effective Product Positioning Tactics


Effective User Stories


Empathy


Engagement Metrics


Enterprise Product Management


Ethical Considerations


Ethical Product Management Practices


Evolution of Product Management


Execution Strategies


Experience Mapping


Experiential Marketing


Experimentation


Extreme Programming


F

Feature Flags Explained


Feature Flags


Feature Prioritization


Feature Prioritization Techniques


Feedback Loops


Financial Modeling


Functional Requirements Definition


Functional Requirements


G

Gamification


Gantt Charts


Go-To-Market Strategy


Goal-Oriented Product Management: A Comprehensive Guide


Growth Hacking Strategies


H

Heuristic Evaluation


High-Fidelity Prototypes


Holistic Product Strategy


Human-Centered Design


Hybrid Agile Frameworks


Hypothetical Scenarios


I

Ideation Process


Impact Mapping


Incremental Delivery


Influence Maps


Innovation Management


Iterative Development


J

Job Stories


Jobs to Be Done Framework


Journey Mapping


Just-In-Time Product Development


K

Kanban Methodology


Kanban Methodology


Kano Model


Kano Model


Key Performance Indicators (KPI)


Kickoff Meetings


Kickoff Meetings


Knowledge Management


Knowledge Management


L

Launch Strategies for Successful Products: A Comprehensive Guide


Lean Product Development: A Guide


Leveraging User Feedback in Product Design: A Guide


Lifetime Value Calculation


M

Market Segmentation Strategies


Metrics and KPIs


Minimum Viable Product (MVP)


Mobile App Development Process


Monetization Strategies


Multivariate Testing


N

Navigating Product-Market Fit for Success


Negotiation Skills


Network Effects


New Product Development Process Guide


Nurturing Innovation in Product Teams


O

Objective Key Results (OKR)


Omnichannel Strategy


Operations Management


Optimizing Product Launch Strategies


Organizational Structure


Outcome-Driven Innovation


P

Pricing Strategies


Product Backlog Management: A Comprehensive Guide


Product Lifecycle Management (PLM) Explained


Product Vision


Product-Market Fit Strategies


Q

Qualitative Research Methods


Quality Assurance Strategies


Quantitative Data Analysis


R

Requirements Gathering


Retrospectives


Roadmap Planning


S

Scrum Framework


Segmentation, Targeting, Positioning (STP)


Sprint Planning


Stakeholder Management


Strategic Product Planning


T

Target Market Analysis


Technical Debt


The Importance of Non-Functional Requirements


Time-to-Market Strategies


Top Prototyping Tools


Total Addressable Market (TAM)


Traction


U

Usage Metrics


User Needs


User Personas


User Story Mapping


Using Jira


Using Prototypes


Utilizing UX Research


V

Validation Techniques


Value Proposition


Value Stream Mapping


Viral Growth Strategies


Vision Statement


Voice of the Customer


W

Web Analytics


Win-Loss Analysis


Wireframing


Workflow Optimization Strategies


Y

Yield Management Strategies


Z

Z-Score Analysis


Zero to One Innovations


Zero-Based Thinking


Zigzag Strategy


Zombie Features Elimination


Zone of Genius


Lifetime Value Calculation for Product Managers

Lifetime Value Calculation is a metric used by product managers to estimate the total revenue a business can expect from a single customer account throughout their relationship with the company. This calculation helps in making informed decisions about customer acquisition, retention strategies, and resource allocation.

Example

Netflix uses Lifetime Value Calculation to guide its decisions on content acquisition, production, and marketing. By understanding the long-term value of a subscriber, Netflix can justify the significant investment in original content, knowing that it increases subscriber engagement and retention, ultimately leading to higher overall revenue.