Kumar (2006, p.5) states that the customer lifetime value is:
the total financial contribution from the current period into the future – that is, revenues
minus costs – of a customer over his / her future lifetime with the company and therefore
reflects the future profitability of the customer.
The CLV (customer lifetime value) is what the customer will pay into the company during
the duration of the period of their relationship. It is a means by which a company gets to
understand their customers and can in turn, predict the value of the relationship between the
customer and the company. This data is pertinent to the company and the Marketing Manager
can use it to his advantage and enhance his marketing strategies and increase revenue for the
company. The CLV is a good way of realising the value a Marketing Manager can generate
from their marketing activities. The Marketing Manager Can make use of the data that they
get from the CLV to enhance their service and put in place strategic, marketing measures that
can be put into place to enrich the customer’s experience.
The Marketing Manager can use the CLV for decision making processes in aspects that
concern the customer and the company. The CLV reveals the type of products and frequency
that customers tend to purchase. This can help the Marketing Manager in determining which
products to consider in producing large volumes. In terms of those products that are not been
purchased as frequently, the Marketing Manager can use this information from the CLV and
modify the products that are not being favoured by the frequent customers. This can help
encourage cross selling and up selling of the organisation’s products. This will help grow the
revenue

www.qualtrics.com
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economictimes.indiatimes.com
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www.crazyegg.com
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www.clv-calculator.com
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searchcustomerexperience.techtarget.com
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clevertap.com
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www.easyship.com
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Alain Jolibert, Hans Mühlbacher, Laurent Flores, Pierre-Louis Dubois
Macmillan International Higher Education, 31 Jul,2012.
Marketing Management: A Value-Creation Process
*Lynette Ryals
John Wiley & Sons, 22 Jan,2009 - Business & Economics
Managing Customers Profitably
P. Rajagopal
Springer, 16 Nov,2012 - Business & Economics - 295 pages
Darwinian Fitness in the Global Marketplace: Analysing the Competition
Tapan Kumar Panda
ICFAI Books, 2006 - Marketing - 236 pages
Contemporary Marketing: The Changing Face of Marketing in 21st Century
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