P A G E 1 6 P R O S C O N S Control and ownership Highly sophisticated data science team required, which could take months and be expensive in terms of salaries First-hand knowledge of the business Customization required as publicly available resources do not provide access to cutting-edge techniques or industry best practices, making it difficult to achieve high accuracy Continuous improvement Model validation process can be very lengthy before gaining approval, leading to delays in driving business impact Strategic alignment Difficult to predict the CLV of early customers (often scored as low value due to the lack of transactional data) Difficult to translate the knowledge across departments with little prior implementation experience P A G E 1 8 Should We Build This Capability In- House? There are advantages to a company conducting its own CLV analysis, but the disadvantages often outweigh them — particularly if a company lacks in-house CLV modeling and implementation expertise. “Customer centricity is a strategy that aligns a company’s development and delivery of its products and services with the current and future needs of a select set of customers in order to maximize their long-term financial value to the firm.” P E T E R F A D E R T H E T A