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Customer Lifetime Value: The Significance of Repeat Business

  • David W. StewartEmail author
Chapter
Part of the Palgrave Studies in Marketing, Organizations and Society book series (PSMOS)

Abstract

Loyal customers, those customers who return to purchase again and again, are critical to the long-term financial success of the firm. This chapter explores the role of customer loyalty and repeat purchasing on the financial performance of the firm. The chapter develops the concept of lifetime value of a customer as a conceptual framework for linking marketing actions to cash flow and for evaluating the value of individual customers and the return on marketing actions and expenditures designed to create and maintain loyalty among customers.

References

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.College of Business AdministrationLoyola Marymount UniversityLos AngelesUSA

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