Using CLV concept for marketing budgets allocation

Elena Panteleeva () and Olga Oyner
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Elena Panteleeva: Associate Professor, Marketing of Firm Department, National Research University Higher School of Economics.
Olga Oyner: Full Professor, Marketing of Firm Department, National Research University Higher School of Economics.

HSE Working papers from National Research University Higher School of Economics

Abstract: The paper evaluates the usefulness of customer lifetime value (CLV) as a metric for marketing budget allocation by developing a framework that enables managers to maintain customer relationships proactively through different elements of marketing mix, in order to maximize CLV. The analysis is based on data from a hardware components PC B2B company and suggests that there is a potential for increased sales and CLVs when managers design resource allocation rules that maximize CLV. Managers can use the authors’ framework to distribute marketing resources efficiently across customers and when choosing between different promotional activities.

Keywords: marketing performance; customer lifetime value; marketing budgets; resources allocation (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2013
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Published in WP BRP Series: Management / MAN, January 2013, pages 1-15

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