Identifying and Managing Valuable Prospects

A high percentage of customers quit their relationship with a firm each year. Therefore companies constantly must acquire new customers and characterize valuable customers to avoid acquiring customers, constantly switching their relationship with a firm in response to competitive offerings. Certain models to assess the customer life value (CLV), the discounted difference between a customer’s revenue and sales costs, are available. However these models have certain limitations, for example ignoring acquisition. This paper investigates the importance of the acquisition phase for the CLV and sets up propositions related to CLV.



Citation:

Steffen Zorn and Jamie Murphy (2009) ,"Identifying and Managing Valuable Prospects", in AP - Asia-Pacific Advances in Consumer Research Volume 8, eds. Sridhar Samu, Rajiv Vaidyanathan, and Dipankar Chakravarti, Duluth, MN : Association for Consumer Research, Pages: 62-63.

Authors

Steffen Zorn, University of Western Australia, Australia
Jamie Murphy, University of Western Australia, Australia



Volume

AP - Asia-Pacific Advances in Consumer Research Volume 8 | 2009



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