CUSTOMER VALUATION THEORY & FIRM VALUE
Augmented Customer Value through the Wheel of Fortune Strategies
Once a firm has used CLV to determine directly contributed customer value, it can then use that information to implement value-maximizing strategies. This added impact of customer value corresponds to the depth of the contribution. Using CLV, firms can effectively select for profitable customers, manage loyalty and profitability among the customer base simultaneously, and optimize the allocation of resources, among other managerially value-generating actions. In this regard, the Wheel of Fortune Strategies have been developed to aid firms in addressing marketing issues with greater confidence (Kumar (2008), (2013)). This set of strategies answers the following questions:
References
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