{"id":39,"date":"2021-05-19T15:21:48","date_gmt":"2021-05-19T15:21:48","guid":{"rendered":"http:\/\/vkclv.resourz.net\/?page_id=39"},"modified":"2021-06-03T06:12:13","modified_gmt":"2021-06-03T06:12:13","slug":"typical-drivers-of-clv","status":"publish","type":"page","link":"https:\/\/www.vkclv.com\/index.php\/typical-drivers-of-clv\/","title":{"rendered":"Typical Drivers of CLV"},"content":{"rendered":"\t\t
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ABOUT CUSTOMER LIFETIME VALUE<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Typical Drivers of CLV<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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CLV can serve as an important guide in deciding which customers to target and how to acquire them. It can also guide managers in understanding how their marketing actions influence customer behavior, and in analyzing the effectiveness of their marketing initiatives. For example, if a firm changes its mailing strategy and follows a more selective approach, it can monitor how this particular action affects the CLV of its customers. The change in CLV can give a direct measure of the strategy\u2019s effectiveness, and it can guide firms to make a final decision regarding continuing, abandoning, or modifying this strategy.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In this regard, it is important to understand the factors that drive a profitable relationship with the customer, and how the factors impact the CLV. Understanding this relationship will:<\/p>

(a) provide the firm with a better understanding of the structure of a profitable customer relationship, and
(b) help managers take proactive measures to maximize a customer\u2019s lifetime value.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The profitable duration of the customer-firm relationship depends, differentially, on the purchase or exchange characteristics at time\u00a0t<\/em>\u00a0and on differences in customer characteristics. Therefore, the exchange characteristics and customer characteristics are the primary driver categories of CLV. Other driver categories include the product characteristics and the firm\u2019s marketing actions. The exchange characteristics are predominately the same for the majority of the cases in business-to-business (B2B) setting (Venkatesan, Rajkumar and\u00a0V. Kumar<\/strong>\u00a0(2004)) and business-to-customer (B2C) setting\u00a0Kumar, V<\/strong>., Denish Shah, and Rajkumar Venkatesan (2006)). However, the drivers that reflect customer characteristics, product characteristics, and a firm\u2019s marketing actions could vary in B2B and B2C settings. The table below provides the classification of these drivers in B2B and B2C settings.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Typical Drivers of CLV in B2B and B2C Settings<\/h5>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Understanding Customer Contributions<\/a><\/p>

The Concept of Customer Lifetime value<\/a><\/p>

How can CLV benefit firms?<\/a><\/p>

How can CLV be maximized?<\/a><\/p>

Select Case Studies<\/a><\/p>

CLV Models<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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References<\/u><\/strong>
Venkatesan, Rajkumar and\u00a0V. Kumar<\/strong>\u00a0(2004), \u201cA Customer Lifetime Value Framework for Customer Selection and Resource Allocation Strategy,\u201d\u00a0Journal of Marketing<\/em>\u00a0(October), Vol. 68 (4), pp. 106 \u2013 125.
Kumar, V<\/strong>., Denish Shah, and Rajkumar Venkatesan (2006), \u201cManaging Retailer Profitability: One Customer at a time!\u201d,\u00a0Journal of Retailing<\/em>, Vol. 82 (4), October, pp. 277 \u2013 294.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t<\/i>\t\t\t<\/span>\n\t\t\t\t\t\tHow Can CLV Benefit Firms?<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t<\/i>\t\t\t<\/span>\n\t\t\t\t\t\tHow Can CLV Be Maximized?<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

ABOUT CUSTOMER LIFETIME VALUE Typical Drivers of CLV CLV can serve as an important guide in deciding which customers to target and how to acquire them. It can also guide managers in understanding how their marketing actions influence customer behavior, and in analyzing the effectiveness of their marketing initiatives. For example, if a firm changes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-39","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/pages\/39","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/comments?post=39"}],"version-history":[{"count":39,"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/pages\/39\/revisions"}],"predecessor-version":[{"id":2527,"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/pages\/39\/revisions\/2527"}],"wp:attachment":[{"href":"https:\/\/www.vkclv.com\/index.php\/wp-json\/wp\/v2\/media?parent=39"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}