Name That Tune: Smith Professor Combines Academic Rigor, Entrepreneurial Application and Musical Innovation

Students in Associate Professor Daniel McCarthy's customer relationship management analytics course are getting a unique blend of rigorous academic content and creative learning tools. McCarthy, whose research focuses on customer-based corporate valuation (CBCV), has found an unexpected way to reinforce complex marketing concepts: through music.

Academic Foundation and Research Impact

McCarthy brings a strong background in finance and statistics to his work at the Smith School. His research focuses heavily on customer-based corporate valuation, a methodology that provides deeper insights into company performance by analyzing customer behavior patterns over time.

"CBCV exploits the fact that all revenue comes from customer purchases," McCarthy explains. "Good models of customer purchase and spending behavior provide crucial insight into future revenue and business model durability."

This approach has wide applications across industries where consumer tracking is possible, from direct-to-consumer businesses to software-as-service, restaurants, pharmaceuticals and telecommunications. In one case, McCarthy's analysis showed a company that their strategy of using product samples at discounted prices was effective and should be expanded significantly, directly influencing their marketing approach.

In addition to studying these concepts in the classroom, he has founded two businesses focused on customer analytics and CBCV: Zodiac (sold to Nike in 2018) and Theta. The practical application of these methodologies, and the real-world experience that comes with implementing these models for Fortune 500 companies, enhances the insights he can bring when teaching these concepts to students in the classroom.

His other research focuses on privacy concerns, examining "what is causing customers to do what they do, then understanding the downstream consequences for firms," including a paper recently accepted for publication at Management Science on the impact of Apple's App Tracking Transparency on e-commerce businesses.

"I like topics where people really care about the answer," he said. McCarthy's work has garnered attention beyond academia—he's been contacted by lawmakers for testimony regarding his research and has even had his work discussed by CNBC's Jim Cramer.

Innovative Teaching Philosophy

McCarthy's approach to teaching extends far beyond traditional lectures. "I've been experimenting with new tools in the classroom," he says. He creates instructional videos for almost every important topic covered in class, providing bite-sized references students can review without wading through extensive notes.

Each class begins with an example of how customer lifetime value (CLV) impacts current events, connecting theoretical concepts to real-world applications. McCarthy is highly responsive to student feedback – both the videos and current events discussions were frequently mentioned as highlights of the course in prior years.

"One thing that I've been introducing over the past year has been music," McCarthy said. With the help of GPT, he creates songs that reinforce each day's lesson, delivered in various musical genres suggested by students.

Making Marketing Concepts Memorable

McCarthy's musical teaching tool has become increasingly popular among students. His collection now includes songs covering key concepts like customer lifetime valuation (CLV) and customer acquisition costs (CAC) in genres ranging from rock and EDM to Latin, cabaret, and hip hop.

"The Value of a Lifetime (CLV via Cabaret)" sounds like something out of the musical "Chicago," while "Rocking the CBCV" could fit at a Fall Out Boy concert. The choruses often contain memorable takeaways about marketing concepts: "Breaking it down by behavior, each dimension we seize/Decompositional approach showing hidden guarantees"

Student Adam Supplee, MBA ‘25, said a creative tool like this makes learning “more enjoyable and effective.” 

“After every class, I like to do a quick review and organize my notes. Sometimes, that can feel overwhelming—especially after a long lecture,” Supplee said. “But the songs provided a lighthearted yet effective recap of the key points, making that review process feel less daunting.”

Creating these songs requires significant effort. “Writing with GPT is hard to get a song to “hit”,” McCarthy notes. The AI tends to generate “generic AI slop” lacking authenticity, requiring him to invest substantial time crafting effective educational content.

Student Engagement and Outcomes

McCarthy’s impact on students goes beyond the classroom and catchy songs. He regularly meets students for lunch every other week, creating an open environment where they feel comfortable discussing what’s on their minds outside the sometimes-pressured classroom setting.

His approach has resulted in student success. One secured a job because the course material was directly relevant to interview questions. Others have found the material so valuable that they've shared the educational songs with family and friends.

"There’s what you can learn in the classroom and then there is also what you can learn once you start doing it for real," McCarthy said. He emphasizes his availability as a resource even after graduation: “To be able to be a resource after, I think it's a big deal for the student.”

Looking Ahead

As his first year at the Smith School closes, McCarthy continues innovating while staying in tune with changes in the field. "This sort of topic [CLV] changes a lot from year to year, so just keeping up with it kind of forces you to do what you know you probably should do," he says.

If there were more hours in the day, he'd add corresponding music videos to his educational album. “That would take way too long with current tools,” he admits, but hopes future technology might make this addition to his teaching toolkit possible.

Through his combination of rigorous research, innovative teaching methods, and dedication to student success, McCarthy is making complex marketing concepts both accessible and memorable—sometimes with a catchy beat.