Showing 61-80 of 853


How Should You Calculate Customer Lifetime Value?

  • Read Time: 3 min 

Should marketers subtract the cost of acquiring a customer before assessing that customer’s lifetime value (CLV)? Most of the time, no. “CLV is easier to understand, and in our view more useful, if marketers don’t subtract the acquisition cost from their calculation of CLV before reporting it,” write Neil T. Bendle and Charan K. Bagga. “Imagine that a company is selling an old machine. In this scenario, the company’s managers would expect to receive the machine’s current value, not the current value less what the company paid to buy the machine when new.”


Free Webinar: Integrating Sales and Operations

On May 12 at 1 pm ET, Professor Theodore Stank, co-author of “Integrating Supply and Demand” from MIT SMR’s Summer 2015 issue, joins contributing editor Steven Paul to present his research on how some companies have bridged the perennial divide between demand generation and the supply chain in a way that maximizes the value to their customers and to themselves. Professor Stank describes how to avoid having sales generation become disconnected from the operations required to fulfill that demand



Should You Use the Value of a “Like” as a Metric?

  • Read Time: 3 min 

Social media strategy shouldn’t be seen as the driver of value difference between a company’s fans and nonfans. Fans are often more favorable toward a brand to start with than nonfans are — indeed, this is probably what motivated them to affiliate in the first place. As well, social media spending should not be justified by an observed difference in customer value that may not have been caused by social media spending. Instead, to understand social media marketing’s impact, companies should run randomized experiments.


Predicting the Future: How to Engage in Really Long-Term Strategic Digital Planning

  • Read Time: 5 min 

Companies need to look at their digital strategies over a 10 – 20 year timeframe. The trends that are beginning now, no matter when they materialize, could be significantly disruptive for all businesses. One of those — self-driving cars — will affect some industries more than others, including auto dealers, manufacturers, government, retail, and real estate. An increasingly digital competitive environment demands developing both short- and long-term digital strategies.


Remapping the Last Mile of the Urban Supply Chain

  • Read Time: 6 min 

There are many reasons to believe we are on the crest of substantial progress with even the most challenging of last mile deliveries. Innovative models such as smart locker systems, the use of electric vehicles, and on-demand fleet services such as UberRUSH are being explored. The MIT Megacity Lab is helping identify customer-specific insights about how supply chains deliver products to urban customers and finds that autonomous delivery vehicles, while still years from wide-scale implementation, hold game-changing promise.



Should You Use Net Promoter Score as a Metric?

  • Read Time: 5 min 

The net promoter score (NPS) has become one of the most widely used marketing metrics. Consumers answer a simple question (How likely is it that you would recommend X?) on a scale from 0 to 10. Customers who answer 9 or 10 are considered promoters; those who answer 6 or less are rated as detractors. The score is the percentage of promoters minus the percentage of detractors. One of the strongest selling points of NPS is its simplicity. But the value of NPS may depend upon whether a manager sees it as a metric or as a system.


MIT for Managers: Goodbye Traffic Lights?

  • Read Time: 4 min 

The next time you’re sitting at a red light, savor the moment. If researchers from MIT’s SENSEable City Lab and the Ambient Mobility Lab have their way, your hours of waiting at traffic lights could be numbered. In an article published in PLoS One, a team led by MIT’s Carlo Ratti and Paoli Santi describe a system in which automobiles and transportation infrastructure would interact though an algorithm that would manage the safe flow of cars through busy intersections.


Blockchain Data Storage May (Soon) Change Your Business Model

Blockchain is a data storage technology with implications for business that extend well beyond its most popular application to date — the virtual currency, Bitcoin. Managers need to build their organization’s absorptive capacity around this topic for at least three reasons: (1) the potential effects on organizational value chains, (2) communication within and between organizations, and (3) benefits from cooperation.


On Demand: Free Webinar, IoT in Motion

  • Read Time: 1 min 

Siemens’ Gerhard Kress, director of the company’s Mobility Division, has extensive experience in using IoT data and analytics to predict and manage service challenges in the railway industry. He joins MIT SMR senior editor Bruce Posner to discuss how companies that move people and products can capitalize on the opportunity that IoT data offers. Kress will show how the age of Big Data lets transportation companies improve how they manage the multiple challenges affecting their operations.



Should You Use Market Share as a Metric?

  • Read Time: 5 min 

Market share is a hugely popular metric. But is it really useful? Companies with superior products tend to have high market share and high profitability because product superiority causes both. This means that the two metrics are correlated — but it does not necessarily mean that increasing market share will increase profits. Using market share as a metric of success simply because other companies do can be counterproductive.


Equipping the Sustainability Insurgency

Sustainability Insurgents are professional insiders who seek to align their organizations with a global vision of a peaceful, prosperous, and sustainable world. This article explores how two insurgents, working for dramatically different organizations, developed a peer-to-peer network to help spread the sustainability insurgency.


The Paris Agreement — It's Down to Business

The Paris Agreement signals the end of the fossil fuel era, shifting the entire world economy — with huge implications for business. Governments in 195 countries committed to climate goals, but the scale of the transition required is such that governments can’t do it alone. We need business to fully commit, too. And the mechanism for this commitment can be found in business by-laws and constitution statements.

Showing 61-80 of 853