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A Customer lifetime value framework for customer selection and resource allocation strategy

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In this study, the authors evaluate the usefulness of customer lifetime value (CLV) as a metric for customer selection and marketing resource allocation. They first develop a dynamic framework for measuring CLV that enables managers (1) proactively to maintain and improve customer relationships through marketing contacts across various channels and (2) simultaneously to maximize customer lifetime value. The proposed framework provides managers a tool with which to assess the return on marketing investments by identifying avenues for optimal resource allocation across channels of communication for each individual customer so as to maximize CLV. The authors use the customer database of a high-technology firm. The database of the organization focuses on business-to-business customers. Using two cohorts of customers, the authors identify the various drivers of CLV that belong to constructs including customer switching costs, customer involvement, customer previous purchase behavior, and marketing communication across various channels. The authors find that marketing communication and customer returns influence CLV nonlinearly. Customers selected on the basis of CLV provide higher profits in future periods than do customers selected on the basis of other widely used metrics. Finally, the authors show that there is a potential for substantial improvement in profits when managers design resource allocation rules that maximize CLV.Printed Journal

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Ketersediaan

Call Number	Location	Available
	PSB lt.dasar - Pascasarjana	1

Penerbit	American Marketing Association.,
Edisi	-
Subjek	Return on investment Valuation Customer relations High technology Resource allocation studies Advertising expenditures
ISBN/ISSN	222429
Klasifikasi	-
Deskripsi Fisik	-
Info Detail Spesifik	-
Other Version/Related	Tidak tersedia versi lain
Lampiran Berkas	Tidak Ada Data