OPTIMIZING CRM: A FRAMEWORK FOR ENHANCING PROFITABILITY AND INCREASING LIFETIME VALUE OF CUSTOMERS

A research model is presented which provides a framework for Customer Relationship Management (CRM) wherein the lifetime value (LTV) of customers is increased while enhancing ongoing profitability. Five propositions were developed suggesting how organizations may increase the probability of enhancin...

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Bibliographic Details
Published in:Marketing management journal 2010-10, Vol.20 (2), p.140-151
Main Authors: Thakur, Ramendra, Summey, John H
Format: Article
Language:English
Subjects:
Competitive advantage
Customer relations
Customer services
Marketing
Marketing management
Profitability
Online Access:Get full text
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Summary:A research model is presented which provides a framework for Customer Relationship Management (CRM) wherein the lifetime value (LTV) of customers is increased while enhancing ongoing profitability. Five propositions were developed suggesting how organizations may increase the probability of enhancing profitability and building long-term relationships. The customer centric propositions for enhancing lifetime value address provisions for better service information, tracking and managing the value of customers, having more information about their behavior, and having highly positive experiences with them.
ISSN:1534-973X
2329-9762