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Customer Lifetime Value: Empirical Generalizations and Some Conceptual Questions

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  • Blattberg, Robert C.
  • Malthouse, Edward C.
  • Neslin, Scott A.

Abstract

From the extant literature on Customer Lifetime Value (CLV), we identify four empirical generalizations (well-defined, consistent effects found by at least three different sets of authors): customer satisfaction, marketing efforts, cross-buying and multichannel purchasing all have positive relationships with CLV. The frequency and monetary value of previous purchases generally have a positive effect on CLV, although there are some contradictory findings in this regard. We identify additional issues that have received limited attention in the literature, but require further empirical study: the effects of pricing, earned rewards and promotions on CLV, managing a sequence of contacts to maximize response rates and CLV, and whether CLV can be forecasted sufficiently accurately. We also discuss additional conceptual issues that merit further research.

Suggested Citation

  • Blattberg, Robert C. & Malthouse, Edward C. & Neslin, Scott A., 2009. "Customer Lifetime Value: Empirical Generalizations and Some Conceptual Questions," Journal of Interactive Marketing, Elsevier, vol. 23(2), pages 157-168.
    • Handle: RePEc:eee:joinma:v:23:y:2009:i:2:p:157-168
    DOI: 10.1016/j.intmar.2009.02.005
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