Building on CLV Principles

As mentioned earlier, the CLV metric has resulted in the creation of other metrics that can be used to manage and maximize customer value. Each of these metrics has to be managed independently since a customer could contribute in multiple ways. Further, firms must identify the ideal combination of direct & indirect value contribution from the metrics that provides the highest profits to the firm (Kumar, V.,  (2018)). The following figure illustrates the metrics that embed the principles of CLV.

While most of the metrics illustrated in the above figure have been discussed in other sections of this website, this section provides a brief description of salesperson lifetime value (SLV), donor lifetime value (DLV), and employee engagement value (EEV) metrics.

Kumar, V.,  (2018) "A Theory of Customer Valuation: Concepts, Metrics, Strategy, and Implementation," Journal of Marketing, forthcoming.