Strategies for maximizing customer equity of low lifetime value customers

Research output: Chapter in Book/Report/Conference proceedingChapter


The management of customer equity is becoming a major issue for firms. Traditionally, firms have concentrated on lifetime customer value and the assets that a firm can derive through relationships with customers who have high lifetime value or high equity. The majority of research in this area has examined strategies used to maximize sales and profits from high lifetime value customers. The present research examines strategies that firms need to follow with customers with low lifetime value. This paper suggests that firms develop strategies for "transactional" and "discount" customers who have traditionally been classified as low lifetime equity customers. Through an examination of extant literature and industry strategies the paper examines the reasons for ignoring these segments, and proposes strategies that will enhance segment penetration and firm performance. Implications for managers are also highlighted.

Original languageEnglish (US)
Title of host publicationCapturing Customer Equity
Subtitle of host publicationMoving from Products to Customers
PublisherTaylor and Francis Inc.
Number of pages19
ISBN (Electronic)9781315866291
ISBN (Print)0789033402, 9780789033406
StatePublished - Jun 11 2014


  • CLV
  • CRM
  • CRM strategies
  • Customer equity
  • Customer lifetime value
  • Relationship equity

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)


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