Study On CLV Model And It's Applications In Enterprises

During the Knowledge Economy Age, customer is an important resource for company, which was accredited by Business Administration and Marketing. And the related research about Customer Value(CV for short)were widely and multiple in Marketing. With the deepening studying on customer's relation, the scholars find t hat the customer retention has surprising influence on the profitability of a company. They reported that the net present value increase in profit that results from a 5% increase in customer retention varies between 25% and 95% over industries. It has been argued that customer retention is the most vital goal of company success. However, the goal of customer retention is not striving for zero defection. Instead, firms should focus on managing their retention rate and optimizing customer equity.As a useful tool of market analysis, Customer Lifetime Value(CLV)models plays important role in Customer Relationship Managemen(tCRM). CLV can predict future margin of customer effectively, so the computation of CLV is an indispensable step in making right customer strategies. This thesis will include two aspect contents:researching on constructing CLV models and applying these models in enterprises.After introducing the recent overseas and domestic research work on CLV models, the paper illustrates the theory framework correlated with CLV, including CRM theory, customer lifecycle theory and customer value theory. Based on CLV model, the paper discusses the applications of CLV theory and model in customer relationship management and brings forward some relevant strategies to direct the CRM practice of Chinese enterprises.