Understanding and using customer loyalty and customer value

Edward Carl Malthouse*, Francis J Mulhern

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

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 languageEnglish (US)
Pages (from-to)59-86
Number of pages28
JournalJournal of Relationship Marketing
Volume6
Issue number3-4
DOIs
StatePublished - Dec 1 2007

Keywords

  • Customer loyalty
  • Database marketing
  • Lifetime value
  • Loyalty programs

ASJC Scopus subject areas

  • Marketing

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