Lifetime Value & How to Measure It
As you scroll through Facebook over lunch, pause a moment and think about the history you’ve compiled over the years. The pictures, videos and comments on your feed are snapshots of thoughts and actions during that brief moment in time.
Imagine categorizing these snapshots into a series. For example, Jane went to coffee at 9am, then to school at noon, and finished her day with a hot yoga session at the downtown YMCA. Now imagine comparing Jane’s day to her peers, or those in proximity to her. Can we see any consistencies between Jane and the peer group?
What happens if Jane changes her habits, and stops drinking coffee? Can we predict a change in her daily routine? Is she more likely to have health problems down the road?
These big questions can be answered by comparing data points on a timeline. At Collective Metrics, our goal is to gather these pieces of information and use the findings to help our users understand the lifetime value of their programs. For example: out of 100 participants how many will go on to receive degrees? What percentage will start new businesses? How many will have kids?
Over time, have our efforts dramatically improved quality of life, or resulted in another outcome? We can only begin to understand lifetime value if we collect data points throughout a user’s history. In the future, organizations will lean more heavily on social media timelines in order to compile and analyze correlations.
Open access to these data sources, from a simple user interface, will provide a new level of sophistication to the masses and help us understand the true lifetime value of our work.
~ Thoughts on business intelligence, nptech, big data and social enterprise from our staff, founders and friends.