Abstract
Loyalty and customer value are defined and we propose a model that relates the two concepts to each other and to firm performance. We survey applications of the concepts and discuss how they are measured. We derive aggregate-level estimates of CLV for the contractual setting, maximum likelihood estimates of retention rates, and give an example for a non-contractual setting. Strategies for increasing loyalty and customer value are also discussed.
Original language | English (US) |
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Pages (from-to) | 59-86 |
Number of pages | 28 |
Journal | Journal of Relationship Marketing |
Volume | 6 |
Issue number | 3-4 |
DOIs | |
State | Published - 2008 |
Keywords
- Customer loyalty
- Database marketing
- Lifetime value
- Loyalty programs
ASJC Scopus subject areas
- Marketing