Customer Lifetime Value

2019 ◽  
pp. 32-43
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Optimal Strategies ◽  
Customer Lifetime Value ◽  
Customer Relationships ◽  
Customer Engagement ◽  
Global Marketing ◽  
Marketing Performance ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
Strategic Goals ◽  
The Relationship

This chapter indicates the prospect of customer lifetime value (CLV) and the importance of CLV in global marketing. CLV is the total of the financial profit, calculated from the existing period to the future. CLV develops the optimal strategies for customer engagement, promotes the understanding of potential value of a customer, and enables the workforce to effectively improve customer relationships. CLV can be a crucial perspective for costs to be associated with the promotions and communications to attract the new customers and retain the existing customers. CLV can help individuals estimate a customer's monetary worth to a business after factoring in the value of the relationship with a customer over time. The chapter argues that promoting CLV has the potential to enhance marketing performance and reach strategic goals in global marketing.

Customer Lifetime Value

2018 ◽  
pp. 1584-1593 ◽  
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Optimal Strategies ◽  
Customer Lifetime Value ◽  
Customer Relationships ◽  
Customer Engagement ◽  
Global Marketing ◽  
Marketing Performance ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
Strategic Goals ◽  
The Relationship

This article indicates the prospect of Customer Lifetime Value (CLV) and the importance of CLV in global marketing. CLV is the total of the financial profit, calculated from the existing period to the future. CLV develops the optimal strategies for customer engagement, promotes the understanding of potential value of a customer, and enables the workforce to effectively improve customer relationships. CLV can be a crucial perspective for costs to be associated with the promotions and communications to attract the new customers and retain the existing customers. CLV can help individuals estimate a customer's monetary worth to a business after factoring in the value of the relationship with a customer over time. The article argues that promoting CLV has the potential to enhance marketing performance and reach strategic goals in global marketing.

Customer Digital Engagement and Lifetime Value: An Empirical Study of Telecom Services in India

2021 ◽  
pp. 231971452110650
Author(s):  
Hitesh Sood ◽  
Rajendra Prasad Sharma
Keyword(s):  
Digital Media ◽  
Customer Engagement ◽  
Customer Lifetime ◽  
Rural And Urban ◽  
Lifetime Value ◽  
Managerial Implications ◽  
Kolmogorov Smirnov ◽  
Digital Engagement ◽  
The Relationship ◽  
Smirnov Test

Digitalization has posed severe challenges to traditional businesses. Traditional firms are still not sure of the benefits of digitally engaging their customers. In contrast, the new-age firms have successfully leveraged digital media. This article examines the relationship between digital adoption by customers and customer lifetime value (CLV). This study analysed the mobile recharges by 13 million rural and urban prepaid telecom customers over 60 million transactions from January 2019 to June 2019 in the Indian telecom industry. The computed predictive CLV has been computed and compared across various customer segments (digitally engaged, partially digitally engaged and digitally unengaged customers). The studied data were statistically validated using the Kruskal–Wallis test. The data proved to be non-normally distributed as per the Kolmogorov–Smirnov test. The results supported that digital adoption helps increase customer engagement, loyalty and CLV. The study presents several managerial implications, such as digitally engaged customers being a surrogate for high value and more profitable customers. Also, digitally engaged customers are relatively more loyal, contributing higher CLV than digitally unengaged customers.

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;

Delta model application for developing customer lifetime value

2019 ◽  
Vol 37 (3) ◽  
pp. 298-309 ◽  
Author(s):  
Bahman Hajipour ◽  
Molud Esfahani
Keyword(s):  
Customer Lifetime Value ◽  
Clustering Methods ◽  
Content Type ◽  
Customer Lifetime ◽  
Rfm Model ◽  
Lifetime Value ◽  
Two Stages ◽  
Lock In ◽  
The Relationship ◽  
Delta Model

Purpose The purpose of this paper is to evaluate the relationship between strategy and customer lifetime value (CLV). A new model was proposed for defining customers’ values based on the RFM model and segmenting bank customers using the K-means algorithm. In addition, the authors combined a new category with the delta model in order to analyze the behavior of each cluster. Design/methodology/approach This case study was based on an applied method following its objectives and a descriptive-analytic method in terms of data collection. In this research, the AHP, data mining and K-means clustering methods, as well as the discriminant analysis were applied for computing the weights of the indices, examining the relationship between the identified variables, clustering the records and ensuring the clustering accuracy based on the RFM model, respectively. Findings The paper confirmed the relationship between the strategies and CLV. For a cluster whose strategy was the best product, customers had a minimal CLV. For a cluster whose strategy was based on total customer solutions, customers had a median CLV. For a cluster whose strategy was a lock-in system, customers had a maximal CLV. The results suggested that the delta model with these three strategies could act as the CLV developers in two stages: conversion of transient customers to attached customers and conversion of attached customers to locked-in customers. Research limitations/implications One of the limitations of this study was the lack of access to all the bank accounts and assessment of only the strategy type, while highlighting the exact association between every component of the strategies (e.g. structure, environment, etc.) and CLV as a dependent variable deemed to be of a great necessity. Hence, it is recommended that several studies on the relationships presented in this paper be performed to provide further insights into and guidelines on this issue in the future. Practical implications This study emphasized the relevance of strategy and CLV. Managers should differently treat customers in distinct CLV and loyalty levels. In other words, managers must segment their customers based on CLV and apply appropriate strategies for each segment. Originality/value This research tried to fulfill an identified need to study how strategy can be effect CLV through the application of the delta model with three strategic options.

The Role of Marketer-Generated Content in Customer Engagement Marketing

2019 ◽  
Vol 83 (6) ◽  
pp. 21-42 ◽  
Author(s):  
Matthijs Meire ◽  
Kelly Hewett ◽  
Michel Ballings ◽  
V. Kumar ◽  
Dirk Van den Poel
Keyword(s):  
Social Media ◽  
Customer Lifetime Value ◽  
Emotional Content ◽  
Purchase Behavior ◽  
Customer Engagement ◽  
Online Content ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
Digital Engagement

Despite the demonstrated importance of customer sentiment in social media for outcomes such as purchase behavior and of firms’ increasing use of customer engagement initiatives, surprisingly few studies have investigated firms’ ability to influence the sentiment of customers’ digital engagement. Many firms track buyers’ offline interactions, design online content to coincide with customers’ experiences, and face varied performance during events, enabling the modification of marketer-generated content to correspond to the event outcomes. This study examines the role of firms’ social media engagement initiatives surrounding customers’ experiential interaction events in influencing the sentiment of customers’ digital engagement. Results indicate that marketers can influence the sentiment of customers’ digital engagement beyond their performance during customers’ interactions, and for unfavorable event outcomes, informational marketer-generated content, more so than emotional content, can enhance customer sentiment. This study also highlights sentiment’s role as a leading indicator for customer lifetime value.

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