Learn About Lifetime Customer Value Analysis (LCV) "Lifetime customer value is the most important indicator of financial performance and a firm's shareholder value (Smith and Chang, 2009)."

Lifetime Customer Value Analysis (LCV)

Concept Overview

Lifetime Customer Value Analysis (LCV) Definition

Lifetime Customer Value (LCV) represents a profound, supplier-oriented understanding of customer value which measures the profit contribution of a customer across the entire customer life cycle (Bauer et al., 2003; Cornelsen, 2000).

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Business Evidence

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Business Application

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Professional Tools

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Further Reading

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Lifetime Customer Value Analysis (LCV) References (4 of up to 20) *

  • Bauer, H.H., Hammerschmidt, M. and Braehler, M. (2003) The Customer Lifetime Value Concept and its Contributions to Corporate Evaluation. Yearbook of Marketing and Consumer Research, Vol. 1, pp. 47-67.
  • Blattberg, R.C. (1998) Managing the Firm using Lifetime Customer Value. Chain Store Age, Vol. 74(1), pp. 46-49.
  • Cornelsen, J. (2000) Customer Value Analyses in Relationship Marketing: Theoretical Foundation and Results of an Empirical Study in the Automobile Industry, Nürnberg: Germany.
  • Gupta, S. and Lehmann, D.R. (2008) Models of Customer Value. In B. Wierenga, (Ed.) Handbook of Marketing Decision Models, Springer: New York.

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