International Journal of
Innovation, Management and Technology

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.