ABSTRACT
In this article, we examine current trends in customer lifetime value and customer segmentation models and identify key issues for future research, CLV-based segmentation is a segmentation approach that groups customers into meaningful segments based upon customer lifetime value and (potentially) other factors. In die article, we discuss the extent to which CLV-based segmentation meets the criteria 56for effective segmentation. We also identify six areas for future research: (1) models and management of "micro-segments," (2) using CLV-based segmentation to improve the efficiency of marketing programs, (3) the need for more dynamic CLV-based segmentation models, (4) applying CLV-based customer segmentation to new products and new customers, (5) challenges associated with implementing CLV-based segmentation, and (6) the need for new models that enable firms to segment customers by response to marketing activities and CLV at different points in the customer decision process. doi:10.1300/J366v05n02_04 [Article copies available for a fee from The Haworth Document Delivery Service: 1-8OO-HAWORTH. E-mail address: <docdeU.very@haworthpress. com> Website: < https://www.HaworthPress.com >:© 2006 by The Haworth Press, Inc. All rights reserved.]
