Abstract—The more a marketing paradigm evolves, the more long-term relationship with customers gains its importance. Nowadays most of corporations and firms in the world, including manufacturers and servicers, increasingly gain their incomes and profits through constructing and maintaining long-term relationship with customers. The move towards a customer-centered approach to marketing, coupled with the increasing availability of customer transaction data, has led to an interest in understanding and estimating customer lifetime value (CLV). Furthermore as marketing endeavors to be more accountable, the need of tools and models for measuring and evaluating efforts and investments that accomplish in marketing extent, is felt. The purpose of this research is presentation a new model for Customer Lifetime Value measurement for financial services sector with focus on retail banking. For this purpose, by using the full literature review, a novel model for calculating and measuring the CLV will be presented. After that by using the interview with experts and focus group, the validity of the presented model will be verified. At the final section of the paper, the applied and theoretical recommendation will be provided.
Index Terms—customer relationship management, customer lifetime value (CLV), strategic issues, marketing.
Mohammad Safari Kahreh is PhD candidate of Strategic Management at the University of Tehran, Faculty of Management, and Department of Business Administration. Mohammad Haghighi is Associate Professor at the same affiliation. Mostafa Hesan is master of Public Administration at the same affiliation
Cite: Mohammad Safari Kahreh, Mohammad Haghighi, and Mostafa Hesan, "How can a Business Best Dealing with Profitable Customers? Analysis a New Model for Customer LifetimeValue," International Journal of Innovation, Management and Technology vol. 2, no. 4, pp. 321-325, 2011.