Customer Lifetime Value
Customer Lifetime Value (CLV) is a financial metric that quantifies the total profit a company expects to generate from its relationship with a customer over the entire duration of that relationship. Developed through work by Blattberg, Getz, and Thomas in the 1990s-2000s, CLV integrates acquisition costs, purchase behavior, retention rates, and margin information to estimate the net present value of each customer.
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- Blattberg, R. C., Getz, G., & Thomas, J. S. (2001). Customer Equity: Building and Managing Relationships as Assets. Harvard Business School Press. · ISBN 978-0875847191
- Gupta, S., Hanssens, D., Hardie, B., Kahn, W., Kumar, V., Lin, N., ... & Sriram, S. (2006). Modeling Customer Lifetime Value. Journal of Service Research, 9(2), 139-155. · DOI 10.1177/1094670506293810
- Kumar, V., & Pansari, A. (2016). Competitive Advantage Through Engagement. Journal of Marketing Research, 53(4), 497-514. · DOI 10.1509/jmr.15.0044
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