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Study of the the relationship between customer satisfaction and value over the life cycle (CLV)


Arenkov I.A., Ishmukhametov R.R., Smirnov S.A.
(about the authors)

Arenkov Igor Anatolevich – (The St. Petersburg State University of Economics)

Ishmukhametov Radik Rashitovich –

Smirnov Sergey Anatolevich – (Saint Petersburg State University)

Published in:
Russian Journal of Entrepreneurship
– Volume 18, Number 18 (September 2017)

JEL classification: D03, D11, L81, M20, M30

Keywords: customer satisfaction, customer value during his life cycle (CLV), maximizing customer value during his life cycle


Citation:
Arenkov I.A., Ishmukhametov R.R., Smirnov S.A. (2017). Study of the the relationship between customer satisfaction and value over the life cycle (CLV). Russian Journal of Entrepreneurship, 18(18), 2677-2694. doi: 10.18334/rp.18.18.38309


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Abstract:

Many scientific studies confirm the positive impact of a high level of customer satisfaction on the company's performance indicators. It is believed that the satisfied buyer is more inclined to repeat the purchase, it is easier to retain him, and he helps attract new customers. The authors of this paper propose to move from a general firm level to the analysis of the relationship between the satisfaction of an individual client and the income that the firm receives during the certain period of firm's relationship with the client. For the calculation of income, the customer value indicator is used throughout its life cycle (CLV). The authors conclude that increasing customer satisfaction is the effective tool for maximizing his CLV. Managers can use this toolkit to stimulate customer buying activity and increase the economic value of the existing customer base.







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