Implementing profitability through a customer lifetime value management framework

Kumar V. (), Venkatesan R. () and Rajan B. ()
Additional contact information
Kumar V.: Is the Richard and Susan Lenny Distinguished Chair Professor of Marketing, and Executive Director, Center for Excellence in Brand & Customer Management, J. Mack Robinson College of Business, Georgia State University, Atlanta
Venkatesan R.: Is an Associate Professor of Business Administration at the Darden Graduate School of Business, University of Virginia, Charlottesville
Rajan B.: Is a Marketing Intelligence Analyst at the Center for Excellence in Brand & Customer Management, J. Mack Robinson College of Business, Georgia State University, Atlanta

NIM Marketing Intelligence Review, 2009, vol. 1, issue 2, 32-43

Abstract: Global CRM software spending was $7.8 billion in 2007 and is projected to reach $8.9 billion in 2008. Further, CRM software sales will touch $13.3 billion by 2012. These software and processes have made it possible for companies to gather and analyze large amounts of data on their existing and prospective customers. This article shows how customer-level data can lead to increased customer profitability through (a) selection of the right customers by using the Customer Lifetime Value (CLV) metric, (b) the nurturing of those right customers and, © re-allocation of resources to the profitable customers. Due to this approach profitable management of individual customers is the basis for growth in firm profitability. A case study will show how IBM used CLV as an indicator of customer profitability and allocated marketing resources based on CLV

Keywords: CRM; Customer Lifetime Value; return on marketing contacts (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.2478/gfkmir-2014-0076 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:gfkmir:v:1:y:2009:i:2:p:32-43:n:5

DOI: 10.2478/gfkmir-2014-0076

Access Statistics for this article

NIM Marketing Intelligence Review is currently edited by Christine Kittinger-Rosanelli

More articles in NIM Marketing Intelligence Review from Sciendo
Bibliographic data for series maintained by Peter Golla ().