scholarly journals Deterministic and stochastic Customer Lifetime Value models. Evaluating the impact of ignored heterogeneity in non-contractual contexts

2009 ◽  
Vol 17 (4) ◽  
pp. 257-271 ◽  
Author(s):  
Mihai Calciu
Keyword(s):  
Customer Lifetime Value ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
The Impact

The Relevance of Positive Word-of-Mouth Effects on the Customer Lifetime Value - A Replication and Extension in the Context of Start-ups

2019 ◽  
Vol 3 (3) ◽  
pp. 148-160 ◽  
Author(s):  
Manuel Grossmann ◽  
Christian Brock ◽  
Marco Hubert ◽  
Thomas Reimer
Keyword(s):  
Word Of Mouth ◽  
Customer Lifetime Value ◽  
Positive Word ◽  
Customer Lifetime ◽  
Service Setting ◽  
Start Up ◽  
Lifetime Value ◽  
Positive Word Of Mouth ◽  
Start Ups ◽  
The Impact

This paper investigates the importance of positive word-of-mouth (WOM) effects on estimating the customer lifetime value (CLV) in start-up businesses. In line with prior research, we assume that, especially in young companies such as start-ups, managers and investors neglect the impact of WOM and therefore underestimate the CLV. To examine this assumption, self-collected WOM data is integrated into calculation of the CLV of a one-yearold online grocery retailer start-up. The CLV of 632 customers is combined with a survey about positive WOM activities. The study shows the high relevance of WOM for start-ups in a noncontractual as well as service setting, thereby calling for integration of WOM into calculation of the CLV.

The Impact of Forward-Looking Metrics on Employee Decision-Making: The Case of Customer Lifetime Value

2016 ◽  
Vol 92 (3) ◽  
pp. 31-56 ◽  
Author(s):  
Pablo Casas-Arce ◽  
F. Asis Martínez-Jerez ◽  
V. G. Narayanan
Keyword(s):  
Decision Making ◽  
Default Risk ◽  
Customer Value ◽  
Customer Lifetime Value ◽  
Customer Relationship ◽  
Significant Shift ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
The Impact ◽  
Forward Looking

ABSTRACT This paper analyzes the effects of forward-looking metrics on employee decision-making. We use data from a bank that started providing branch managers with the customer lifetime value (CLV)—an estimate of the future value of the customer relationship—of mortgage applicants. The data allow us to gauge the effects of enriching the employees' information set in an environment where explicit incentives and decision rights remained unchanged. On average, customer value increased 5 percent after the metric's introduction. The metric's availability resulted in a significant shift in attention toward more profitable client segments and some improvement in cross-selling. However, the use of CLV did not negatively impact pricing or default risk, as the literature predicts. Finally, branch managers with shorter tenure displayed a stronger response, consistent with information substituting for experience.

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