MANAGERIAL ACCOUNTING: MODELING CUSTOMER LIFETIME VALUE - AN APPLICATION IN THE TELECOMMUNICATION INDUSTRY
Journal Title: European Journal of Business and Social Sciences - Year 2016, Vol 5, Issue 1
Abstract
Customer lifetime value (CLV) is both a concept and a measure. At its core, CLV is about optimizing each interaction and conversation in order to create an engaged customer relationship which drives customer retention, repeat purchases, customer referrals, reduced support costs, and possibly even price premiums. The aim of this article is to help the management team to cope with the use of customer lifetime value as a decent framework that bridges the gap between the various organizational functions (particularly marketing and finance), offers a common language, so the functions collectively can align on strategy and make more effective decisions regarding investment and customer treatment. Therefore, how to measure and manage customer lifetime value for determining the likely future profit from the customer is very important because the customer is always looking for better and cheaper products and services. Hence, in a broader sense, the objective of this article is to develop a concept of customer lifetime value in the telecommunication industry, in particular in cellular telephony and to demonstrate business uses of CLV for decision making process.
Authors and Affiliations
Ass. Prof. Dejan Krstevski Ph. D. | Faculty of Economics – Prilep University “St. Kliment Ohridski” - Bitola, Macedonia, dejan.krstevski@eccfp.edu.mk, Prof. Gjorgji Mancheski Ph. D. | Faculty of Economics – Prilep University “St. Kliment Ohridski” - Bitola, Macedonia, gmanceski@t-home.mk, +389 70 280 950
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