Don Peppers’ blog posts are followed by nearly 300K on LinkedIn. He was among the first invited to be a LinkedIn Key Influencer when the program began in 2012. Today, he is one of LinkedIn’s top CX experts.

Don's Blog

Customer Lifetime Value, Part III: “Leading Indicators” of LTV Change

Is it possible to identify LTV changes as they happen? The short answer is: Yes. But to do it, your analytics people need to be able to look at current-period transactional and other data – including all the data that goes into modeling customer lifetime values in the first place – and estimate how current-period…

Customer Lifetime Value, Part II: LTV as a Business-Building Tool

In my last post I discussed the basic concept of customer lifetime values and why they’re so important to businesses, in terms of helping them visualize the value-creating role that customers play. Quarterly sales show the value already generated by a customer’s current-period transactions. LTV predicts future value likely to be created by a customer.

What is Customer Lifetime Value?

The easiest way to answer this question is to start with the fact that customers create two different kinds of value for a business: In the short term they buy things, and/or they cost money to serve. This kind of value creation gets reported in the quarterly earnings statement. Over the long term, a customer’s…

Using Children’s Natural Curiosity as a Learning Tool

Curiosity and the “need for cognition” are powerful motivators, especially in children. Nowhere has this become more apparent than in the experiments conducted over the last several years by Sugata Mitra, an education researcher and winner of the 2013 TED Prize. Deep within an Indian slum, Mitra connected a personal computer to the Internet, inserted…

Providing Online Human Assistants

When I lived in Connecticut 25 years ago I used to buy my suits from Mitchells, an upscale Westport clothing store owned and operated by the Mitchell family. The service at this store was (and still is) impeccably personal. Every time I ventured in to the store I dealt with the same salesperson, who soon knew…

Six Innovative Ways to Better Empathize with Customers

As business managers, the whole reason we collect data and facts about the different preferences, desires, and needs of customers is to empathize with each customer’s situation. I’ve said it before, but let me say it again: Empathy is the ultimate form of customer insight. With customer insight we want to know what it’s like…

How to Resist the “Confirmation Bias”

Some scientists now believe that our ability to reason co-evolved with our social nature and our need to communicate. If you were an early human, if you had strong reasoning power you could persuade other humans – members of your tribe or community – to do what you wanted them to do, and this would…

Reciprocity is a Powerful Sales Tool

In almost any philosophy of ethics, the “principle of reciprocity” will be central. Strong reciprocity is demonstrated when you treat other people the way you’d like to be treated yourself. Known to Christians as “the Golden Rule,” some form of the reciprocity principle is found in virtually every major religion. In some religions the principle…

Making Forecasts in an Age of Accelerating Technological Change

The Daimler Motoren Gesellschaft (DMG) company manufactured its first gasoline-powered Mercedes car in 1902. And early in the 1900s, so the story goes, DMG’s financial planners carefully predicted that by the year 2000 the world automotive market might have grown to such an extent that there could be as many as one million automobiles in use worldwide. But…

Fallacy of Studying “Best Practices”

I did a full-day workshop in Bangkok last month showing marketers how to make more balanced and scientific decisions with data. No calculations were required, nor were any mathematical equations harmed in the process. One of the reasons I created this workshop is that even with all the data and analytical tools available today, managers…