scholarly journals Differentiated Customers’ Loyalty Development in Relation to Different Customer Lifetime Values

Ekonomika ◽  
2004 ◽  
Vol 67 ◽  
Author(s):  
Hana Loštakova ◽  
Martina Kohoutová ◽  
Andrea Koblížková
Keyword(s):  
Customer Relationship Management ◽  
Marketing Research ◽  
Customer Relationship ◽  
Sales Managers ◽  
Industrial Firms ◽  
Individual Interviews ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
Total Market

This paper shows that it is not effective to increase the total market share at present, but it is more effective to pay attention to increasing the share at key customers (wallet share). Building a differentiated customer relationship management and a customers’ loyalty according to different customer lifetime value (CLTV) is a must. This paper presents the results of a qualitative marketing research by means of the method of individual interviews with SBU managers, marketing managers and sales managers in the Czech industrial firms operating on B-to-B markets. This research was focused on the benefits of customers’ loyalty development and on mapping the customers’ loyalty development instruments available for building long-term relationships with key customers in the contemporary turbulent market environment.

Customer Lifetime Value: A Review

2012 ◽  
Vol 40 (7) ◽  
pp. 1057-1064 ◽  
Author(s):  
Wen Chang ◽  
Chen Chang ◽  
Qianpin Li
Keyword(s):  
Customer Relationship Management ◽  
Critical Review ◽  
Development Process ◽  
Relationship Management ◽  
Customer Lifetime Value ◽  
Customer Relationship ◽  
Review Of The Literature ◽  
Customer Lifetime ◽  
Lifetime Value

The concept of regarding customers as assets that should be managed and whose value should be measured is now accepted and recognized by academics and practitioners. This focus on customer relationship management makes it extremely important to understand customer lifetime value (CLV) because CLV models are an efficient and effective way to evaluate a firm's relationship with its customers. Assessment of CLV is especially important for firms in implementing customer-oriented services. In this paper we provide a critical review of the literature on the development process and applications of CLV.

Data Mining for Lifetime Value Estimation

2011 ◽  
pp. 431-437
Author(s):  
Silvia Figini
Keyword(s):  
Data Mining ◽  
Customer Relationship Management ◽  
Relationship Management ◽  
Large Degree ◽  
Customer Relationship ◽  
Management Process ◽  
Independent Components ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
Value Estimation

Customer lifetime value (LTV, see e.g. Bauer et al. 2005 and Rosset et al. 2003), which measures the profit generating potential, or value, of a customer, is increasingly being considered a touchstone for administering the CRM (Customer relationship management) process. This in order to provide attractive benefits and retain high-value customers, while maximizing profits from a business standpoint. Robust and accurate techniques for modelling LTV are essential in order to facilitate CRM via LTV. A customer LTV model needs to be explained and understood to a large degree before it can be adopted to facilitate CRM. LTV is usually considered to be composed of two independent components: tenure and value. Though modelling the value (or equivalently, profit) component of LTV, (which takes into account revenue, fixed and variable costs), is a challenge in itself, our experience has revealed that finance departments, to a large degree, well manage this aspect. Therefore, in this paper, our focus will mainly be on modelling tenure rather than value.

Alianza: pricing to enter the pension industry

2014 ◽  
Vol 4 (4) ◽  
pp. 1-6 ◽  
Author(s):  
Pablo Farías
Keyword(s):  
Marketing Research ◽  
Subject Area ◽  
Pricing Strategy ◽  
Marketing Plan ◽  
Marketing Metrics ◽  
Content Type ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
The Impact

Subject area The focus of the case is on the concepts of customer lifetime value (CLV) and customer equity (CE). Monitoring, measuring and maximizing CLV and CE have become a key priority for all marketers. Instructors can introduce these concepts and its key components. The main focus of the case is a quantitative assignment that asks students to analyze the convenience for the existing five AFPs (Administradora de Fondos de Pensiones, Pension Fund Administrator) of winning the tender. The use of CLV and CE measurements is particularly relevant. Students need to estimate the impact of pricing on the CLV and CE of the existing five AFPs. Study level/applicability BA, MSc, MBA Courses: CE, Marketing Metrics, Pricing. The case can also be used in courses that focus on Marketing Plan, Marketing Research or Services Marketing. Case overview In early 2009, Valentina Vial was given the assignment to develop the pricing strategy of Alianza to enter the pension industry. The company will propose a commission fee to compete with the country's existing five AFPs. Whichever AFP presents the lowest commission will be awarded the tender. When there are several competitors, the company must guess each competitor's likely pricing decision. In the analysis of the convenience for the existing five AFPs of winning the tender, the use of CLV and CE measurements is particularly relevant. Valentina Vial needed to estimate the impact of pricing on the CLV and CE of the existing five AFPs. Expected learning outcomes Understand the concepts of CLV and CE and the importance of maximizing a customer's lifetime value for the firm by calculating the CLV and the CE based on a combination of financial and non-financial data. Illustrate the importance of adopting a long-term strategic perspective (using CLV and CE) in choosing a pricing strategy. Once a firm commits to a pricing strategy, it is difficult to shift course. Given this, the choice of pricing levels should be informed by long-term strategic thinking, including consideration of potential competitive pricing decisions. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

A conceptual framework to explain the relationship among electronic customer relationship management and electronic customer lifetime value: investigation the antecedents and presentation a structural model

2018 ◽  
Vol 4 (10) ◽  
pp. 185-193
Author(s):  
Mohammad Safari
Keyword(s):  
Conceptual Framework ◽  
Customer Relationship Management ◽  
Relationship Management ◽  
Business Environment ◽  
Customer Lifetime Value ◽  
Customer Relationship ◽  
Electronic Business ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
The Relationship

This study investigates the relationship between electronic customer relationship management (CRM) and electronic customer lifetime value and their analysis in the electronic business environment in the form of a conceptual framework. CRM is a tool that different industries, especially in competitive conditions, use to maintain customers and increase their satisfaction. An important concept that arises as customer lifetime value that specifies the expected amount of value that the client in a given period of time creates is undoubtedly related to the benefits that accrue to the organisation. The global nature of business as well as the development of information and communication technology is forcing organisations to take advantage of emerging technologies to maintain their competitiveness. The use of e-business is a prominent example. The results of this study could help both researchers and executives of organisations and businesses with the subject of research, and provide good insights for them. Keywords: Electronic business (e-Business), electronic customer relationship management (e-CRM), electronic customer lifetime value (e-CLV), relationship marketing;

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