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Customer Relationship Management: The Bottom Line to Optimizing Your ROI by Dr. Natalie L. Petouhoff, Dr. Jon Anton

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Customer Lifetime Value

Everyone talks about customer lifetime value (CLV), but does anyone really understand what it is or what it takes to achieve it? To begin to address CLV, we need to understand the more sophisticated topics of calculating customer value, understanding customer loyalty, determining overall customer profitability, and ultimately achieving business growth based on the same. While companies are investing billions in operational CRM systems, very few companies have attempted to understand CRM effectiveness. Yet, shareholders are demanding financial accountability. And why shouldn't they? Technology is very expensive and it does not always give the results expected.

Until recently a heady economy could mask the failure of enterprise ...

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