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Customer Lifetime Value in B2B Markets: Theory and Practice in the Czech Republic

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  • Pavel Horak

Abstract

We live in a time of permanent change resulting from the turbulence of business environment. Companies operate on markets with increasing competition. One of the key areas of marketing competencies thus becomes the ability of analytical work resulting from the growing volume of information. Using the differentiated CRM strategy for the correct setting of corporate strategy is not possible without systematic, targeted and contextual processing of information from various sources.The customer has become the most valuable asset of the company. Companies are trying to build long-term relationships with their customers. Marketing managers must be able to measure, analyse and optimize the key elements affecting the development of the portfolio of customers, and identify key factors with a positive effect on growing the customer value. For small and medium-sized businesses that usually do not have big teams of specialists and thousands of customers, it is particularly true. Understanding the benefits of working with customer value and its application in creating a marketing strategy for companies operating in B2B markets is the main step that can determine the success of the company.The aim of this article is following the basic theoretical background focused on the customer lifetime value to analyse secondary sources on this issue for B2B markets in the Czech Republic. Furthermore, to provide first findings from the ongoing research in the segment of small and medium-sized companies operating in the information technology market in the Czech Republic.

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  • Pavel Horak, 2017. "Customer Lifetime Value in B2B Markets: Theory and Practice in the Czech Republic," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(2), pages 1-47, January.
    • Handle: RePEc:ibn:ijbmjn:v:12:y:2017:i:2:p:47
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    References listed on IDEAS

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    1. V. Kumar & Rajkumar Venkatesan & Tim Bohling & Denise Beckmann, 2008. "—The Power of CLV: Managing Customer Lifetime Value at IBM," Marketing Science, INFORMS, vol. 27(4), pages 585-599, 07-08.
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    Cited by:

    1. Stephan Curiskis & Xiaojing Dong & Fan Jiang & Mark Scarr, 2023. "A novel approach to predicting customer lifetime value in B2B SaaS companies," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 587-601, December.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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