Affiliation:
1. Harvard University
2. University of California, Los Angeles; Marketing Science Institute
3. London Business School
4. Capital One
5. University of Connecticut
6. IBM
Abstract
As modern economies become predominantly service-based, companies increasingly derive revenue from the creation and sustenance of long-term relationships with their customers. In such an environment, marketing serves the purpose of maximizing customer lifetime value (CLV) and customer equity, which is the sum of the lifetime values of the company’s customers. This article reviews a number of implementable CLV models that are useful for market segmentation and the allocation of marketing resources for acquisition, retention, and cross-selling. The authors review several empirical insights that were obtained from these models and conclude with an agenda of areas that are in need of further research.
Subject
Organizational Behavior and Human Resource Management,Sociology and Political Science,Information Systems
Cited by
424 articles.
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