How much can a customer consume?
Recent article I wrote on using capacity as a means of targeting can be found on Chief Marketer.
The main point: Customers have value to the firm as well as an overall capacity to consume. The difference between the two, e.g. headroom, makes Life Time Value a two-sided question. How much do I satisfy their needs? How large is their total need? This can be summarized in the following matrix:
Based on the value and headroom, different segments emerge - each with their own strategy.
Even 'high-value' customers can be segmented into those who are sated and those with lots more room.