Acta Univ. Agric. Silvic. Mendelianae Brun. 2011, 59(2), 291-298 | DOI: 10.11118/actaun201159020291
Lifetime value in business process
- Ústav marketing a obchodu, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika
The paper focuses on lifetime value assessment and its implementation and application in business processes. The lifetime value is closely connected to customer relationship management. The paper presents results of three consecutive researches devoted to issues of customer relationship management. The first two from 2008 and 2010 were conducted as quantitative ones; the one from 2009 had qualitative nature. The respondents were representatives of particular companies. The means for data collection was provided by ReLa system. We will focus on individual attributes of lifetime value of a customer, and relate them to approaches of authors mentioned in introduction. Based on the qualitative research data, the paper focuses on individual customer lifetime value parameters. These parameters include: the cost to the customer relationship acquisition and maintenance, profit generated from a particular customer, customer awareness value, the level of preparedness to adopt new products, the value of references and customer loyalty level. For each of these parameters, the paper provides specific recommendations. Moreover, it is possible to learn about the nature of these parameter assessments in the Czech environment.
Keywords: lifetime value, customer, customer relationship management
Grants and funding:
This paper was created in support of faculty research plan id. code: 62156 48904 "The Czech economy is in the process of integration and globalization and development of the agrarian sector and service sector in the new conditions of European integrated market", thematic area of 03 "Development of relations in business sector in relation to changes in lifestyle and purchasing behavior of the population and changes of business environment in processes of integration and globalization" implemented with financial support from state funds through the Ministry of Education.
Received: December 17, 2010; Published: July 7, 2014 Show citation
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