As modern economies become predominantly servicebased,
companies increasingly derive revenue from the creation
and sustenance of long-term relationships with their
customers. In such an environment, marketing serves the
purpose of maximizing customer lifetime value (CLV) and
customer equity, which is the sum of the lifetime values
of the company’s customers. This article reviews a
number of implementable CLV models that are useful for
market segmentation and the allocation of marketing
resources for acquisition, retention, and crossselling.
The authors review several empirical insights that were
obtained from these models and conclude with an agenda
of areas that are in need of further research. pdf. 2006
