Article | Journal of Interactive Marketing | May 2009

Customer-Based Valuation

by Sunil Gupta

Abstract

Customer lifetime value (CLV) has emerged as an important metric to manage and grow customers. Marketing scholars have written many books and articles on this topic. However, most of this research has focused on tactical marketing decisions. While this is important, it is not enough to gain attention of senior managers who are concerned about firm level metrics such as stock price. To have greater impact marketing needs to go beyond brand-level profits to show the impact of marketing actions on firm profitability. In this paper we focus on customer lifetime value and its link to firm value. We discuss research that provides customer-based valuation of firms and suggest directions for future research.

Keywords: Customers; Valuation;

Citation:

Gupta, Sunil. "Customer-Based Valuation." Journal of Interactive Marketing 23, no. 2 (May 2009): 169–178.