How Customer Lifetime Value Is Changing How Business Is Managed
SUMMARY. In the quest for sustainable competitive advantage, managers have sought to differentiate themselves through a customer (as opposed to product) focus. This has given rise to successive strategies designed to improve the customer experience (e.g., objective quality, service quality, customer satisfaction, customer retention, customer loyalty, etc.). The problem, however, is that a satisfied, loyal customer who is persuaded to consistently buy a firm's product or service over and over again because of its quality can be and often is unprofitable.