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Customer lifetime value (CLV) is one of the key indicators to measure the success or health of an organization. How can an organization assess the organization's customers' lifetime value (LTV) and offer relevant strategies to retain prospective and profitable customers? This study offers an integrated view of different methods for calculating CLVs for both loyalty members and non-membership customers.

This study outlines eleven methods for calculating CLV considering (1) the deterministic aspect of NPV (Net present value) models in both finite and infinite timespans, (2) the geometric pattern and (3) the probabilistic aspect of parameter estimates through simulation modeling along with (4) the migration models for including “the probability that customers will return in the future” as a key input for CLV calculation.

The CLV models are validated in the context of complementary and alternative medicine (CAM)in the healthcare industry. The results show that understanding CLV can help the organization develop strategies to retain valuable customers while maintaining profit margins.

The integrated CLV models provide an overview of the mathematical estimation of LTVs depending on the nature of the customers and the business circumstances and can be applied to other business settings.

Building on the relationship marketing and stimulus-organism-response (SOR) theory, the purpose of this paper is to study the impact of the integrated store service quality (ISSQ) on the omnichannel customer lifetime value (CLV). The mediating role of customer commitment (affective, normative and continuance) and relationship program receptiveness with the moderating role of customer relationship proneness were relied upon to better understand the omnichannel customer profitability metric (CLV).

The study is descriptive and relies upon the cross-sectional data collected using the self-administered structured questionnaires from 785 omnichannel shoppers. A purposive sampling technique was performed in the study. Structural equation modeling was performed using the SMART-PLS 4.0 software to analyze the data.

The results indicate that omnichannel customer commitment (affective, normative and continuance) differentially mediates the relationship between ISSQ and relationship program receptiveness, subsequently impacting the omnichannel CLV. The customer relationship proneness significantly and positively moderated the relationships between different dimensions of customer commitment and relationship program receptiveness.

The study relied upon the cross-sectional data from the Indian population aged above 18 years for testing the proposed model. Further studies could test the model across different populations to generalize the study results.

This study addresses the need to investigate the omnichannel retail store customer profitability and their relationship performance with the store. By testing the customer relationship management model in the omnichannel retail store context, this study is the first to show that ISSQ will impact the customer profitability and relationship performance metric (CLV) through omnichannel customer commitment and relationship program receptiveness. The moderating effect of customer relationship proneness on a few proposed hypotheses was also tested to give managerial recommendations.

A paradigm shift was observed a couple of decades back when the relationship marketing took over the transactional marketing. Concepts such as customer lifetime value came into existence. Customer lifetime value is nothing but the aggregate income which an organisation can expect from a customer as long as the customer remains a client. Customer Relationship Management (CRM) took the centre stage as the organisations are transformed into customer-centric organisations. The implementation of CRM earmarked the collection of customer data that enabled the personalisation of products. Business use cases emerged with differential pricing models and loyalty programs contributing to the profitability of the organisations. The different types of CRM, i.e. Strategic CRM, Operational CRM, Analytical CRM and Collaborative CRM, contributed further to the organisation to generate value for the customers as well as for the organisation. Innovations in the digital technologies supported the business use cases with the help of real-time data. The usage of real-time analytics delivered unmatched customer experience resulting in a higher degree of customer satisfaction and customer retention. Customer retention as we know is directly related to the longevity of an organisation, while customer acquisition is expensive. Researchers in this chapter have attempted to unleash the importance of CRM simultaneously presenting the impact of digital technologies on CRM. Readers could be greatly benefitted from this research as practical use cases are discussed, while academicians can cascade this information further.

This study examines factors that affect customer lifetime value (CLV) in fast-food restaurants (FFRs) in Jordan. These factors are relational benefits, brand experiences, service quality (SQ), satisfaction, trust and commitment.

An online survey was collected from a sample of 503 respondents. The authors used SPSS to test the constructs' relationships and analyse the data. SmartPLS was used to test the hypotheses.

In contrast to previous studies, not all dimensions of brand experiences and relational benefits had a significant and positive influence on relationship marketing outcomes (satisfaction, trust and commitment). On the other hand, results demonstrated that SQ had a significant and positive influence on relationship marketing outcomes. Furthermore, research reveals that satisfaction, trust and commitment significantly and positively influenced CLV.

Those FFRs that seek to enhance CLV should build solid and sustainable bonds with their customers. This paper concludes by stating its implications, its limitations and the opportunities available for future research.

This study, which is unique in the Middle East, includes essential strategies for managing customer relationship that can be universally applied to improve customer benefits and maximise the performance of businesses.

This study analyzes how tech firms can implement the modern wave of subscription-based business model (SBBM), including value proposition, value creation, value capture and performance. In fact, these elements push tech firms to move from traditional to SBBMs.

To achieve the objectives of this study, we initially construct a theoretical framework for applying SBBM. Subsequently, we employ qualitative research to examine the current implementation of the subscription-based economy within tech firms.

A successful SBBM necessitates capturing value through sustainable revenue transactions and revising aspects of the value proposition, creation and capture. Continuous improvement through business value analysis is imperative. Additionally, an agile operations system is vital to address revenue complexities, enable data collection and enhance value proposition, service innovation, churn rate and customer retention, which are essential for SBBM maintenance.

This study delves into how the subscription-based economy is reshaping the business models of tech firms. Beyond exploring the theoretical foundation of this transformative path, this study offers actionable insights on enhancing the value proposition, creation, capture and business value within subscription-based economy frameworks.

This study aims to capture how the association between a multichannel relational communication strategy (MRCS) and customer performance is contingent upon such customer performance (low- versus high-performance customers) and to reconcile past contradictory results in this marketing-related topic. To this end, the authors propose and validate the method of quantile regression as an unconventional, yet effective, means to proceed to that reconciliation.

This study collected data from 4,934 customers of a private pension fund firm and accounted for both firm- and customer-initiated relational communication channels (RCCs) and for customer lifetime value (CLV). This study estimated a generalized linear model and then a quantile regression model was used to account for customer performance heterogeneity.

This study finds that specific RCCs present different levels of association with performance for low- versus high-performance customers, where outcome customer performance is the dependent variable. For example, the relation between firm-initiated communication (FIC) and performance is stronger for low-CLV customers, whereas the relation between customer-initiated communication (CIC) and performance is increasingly stronger for high-CLV customers but not for low-CLV ones. This study also finds that combining different forms of FIC can result in a negative association with customer performance, especially for low-CLV customers.

The authors tested the conceptual model in one single firm in the specific context of financial services and with cross-sectional data, so there should be caution when extrapolating this study’s findings.

This study offers nuanced and precise managerial insights on recommended resource allocation along with relational communication efforts, showing how managers can benefit from adopting a differentiated-customer performance approach when designing their MRCS.

This study provides an overview of the state of the art of MRCS, proposes a contingency analysis of the relationship between MRCS and performance based on customer performance heterogeneity and suggests the quantile method to perform such analysis and help reconcile past contradictory findings. This study shows how the association between RCCs and CLV varies across the conditional quantiles of the distribution of customer performance. This study also addresses a recent call for a more holistic perspective on the relationships between independent and dependent variables.

There is an ongoing challenge to map the efficacy of e-retailing strategies in building both value co-creation opportunities for online customers and customer value for companies. Based on the service-dominant (S-D) logic, an integrative model is provided that connects the impact of convenience and personalisation strategies (CPSs) on an e-retailer's performance – by offering co-creation opportunities and customer engagement.

The survey instrument is validated and the model is tested with data from active online customers using a novel methodology that blends artificial neural network (ANN) analysis with partial least squares (PLS) in both the measurement model and the path analysis.

The findings robustly support the model and yield evidence of the contribution of CPSs in effective value propositions, the interface between the S-D logic and customer engagement, and the direct effect of customer engagement on tangible forms of value for companies.

This study is the first scholarly effort to provide a comprehensive understanding of how and why CPSs can maximise customer value for the e-retailer, while simultaneously testing the customer value/engagement interface with a new blended ANN-PLS method.

The hospitality industry values segmentation and loyalty programs (LPs), but there is limited research on new methods for segmenting loyalty program members, so managers often rely on conventional techniques. This study aims to use big data-driven segmentation methods to cluster customers and provide a new solution for customer segmentation in hotel LPs.

Using the k-means algorithm, this study examined 498,655 profiles of guests enrolled in a multinational hotel chain’s loyalty program. The objective was to cluster guests according to their consumption behavior and monetary value and compare data-driven segments based on brand preferences, demographic data and monetary value with loyalty program tiers.

This study shows that current tier-based LPs lack features to improve customer segmentation, and some high-tier members generate less revenue than low-tier members. Therefore, more attention should be given to truly valuable customers.

Hotels can segment LP members to develop targeted campaigns and uncover new insights. This will help to transform LPs to make them more valuable and profitable and use differentiated rewards and strategies.

As not all guests or hotel brands benefit equally from LPs, additional segmentation is required to suit varying guest behaviors. Hotel managers can use data mining techniques to develop more efficient and valuable LPs with personalized strategies and rewards.

This study aims to investigate the role of three customer equity drivers on customer repurchase intent in business-to-business (B2B) markets. It also explores the interconnected nature of equity drivers, specifically, the effects of brand equity and value equity on relationship equity. Further, it investigates how perceived switching costs moderates the interrelationships between customer equity drivers. The authors explore the interrelationships between the customer equity drivers in a B2B context involving commodity products in a developing market.

Data collection was done from a pool of 184 institutional customers of a lubricant brand in a developing market. The sample had representations of buyer organizations across sectors, namely, automobile, cement, metal, fertilizer, railway, defence and mining, etc. The final data were subjected to partial least squares-based structural equation modeling to test the hypothesized model.

The study found a direct effect of brand equity, and value equity on relationship equity and an indirect effect on repurchase intent, namely, relationship equity. Perceived switching cost was found to moderate the interaction between brand equity and relationship equity as well as between value equity and relationship equity. The direct effect of relationship equity on repurchase intent was also significant.

The study implies that B2B firms should ground their marketing program on these customer equity drivers, especially when dealing with commodity products. The absence of any of these drivers would be detrimental in customer retention. The study also establishes the relevance of switching cost(s) and its impact on the underlying dynamics between the different equity drivers in the context of commodity products. The customer equity drivers along with switching costs, if managed well, may become switching barriers for customers and eventually would ensure recurring revenue through repeat purchases.

To the best of the authors’ knowledge, this is one of the first studies that focuses on the disaggregated effect of customer equity on customer outcomes in the B2B context. Furthermore, this study investigates how perceived switching costs moderates the interrelationships between customer equity drivers in the industrial sales context in an emerging market.

The aim of this paper is to gain insights from a case study into how gamified loyalty programs enable and facilitate value co-creation and what underlying purpose organizations pursue when engaging with members in such a program.

A multimethod approach is deployed consisting of an observational and an explorative study. The authors collaborate with adidas, one of the leading (sports) retailers in the world. A five-month netnographic study is conducted on the adiClub, the online loyalty program of adidas. Based on the findings of this first study, semi-structured in-depth interviews were conducted in a second study with adidas managers from diverse backgrounds currently involved in projects and day-to-day work related to the adiClub. The exclusive interview data provide further insights and help interpret and validate the netnographic observations.

Most value co-creation studies on engagement platforms in marketing relate to social media, physical events or online forums. Based on the multimethod approach of this study, existing research is extended on how online loyalty programs enable and facilitate value co-creation. Furthermore, the authors identify the organizational purpose behind engaging in value co-creation practices along the social, economic and ecological dimensions.

This case study offers implications for organizations on how online loyalty programs enable and facilitate value co-creation through gamification. In addition, it connects the value co-creation practices with the respective purpose that organizations pursue with related activities. Hence, it further enhances the knowledge and repertoire of managers for setting up and running gamified online loyalty programs.

Increased gamification driven by the advances of digital transformation enables and facilitates value co-creation, which initiates unprecedented digital sales potential for service organizations. Research about the digital transformation of value co-creation remains scarce. The authors seek to address this research gap by focusing on value co-creating activities within online loyalty programs.