How much is a customer worth to Netflix? - Lifetime Value

Is it possible to attach a monetary value to each of your customers? Netflix believes you can. As impersonal as this sounds, knowing customer value is incredibly useful to any business.
Knowing how much money a customer spends on your products over time is essential to your company's budgeting. It allows you to justify spend on things like marketing or product improvement, because you can estimate the return that you will get on this investment through customer retention and new customer acquisition. Without understanding the concept of lifetime value, Netflix may never have given us original content like: Orange is the new black, Daredevil or Stranger things.
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