8.5 Challenges in Implementing the CLV Management Framework
We have looked at the development and implementation process of the CLV management framework at two firms, in two business settings, B2B and B2C. However, when it comes to practical aspects of the implementation, project managers have to face many other challenges. Most importantly, more challenges will be faced by the management of the focal firm in implementing the recommended strategic implications. In this last section of the chapter, we will address those challenges and suggest viable approaches that firms can apply to overcome such issues.
8.5.1 Challenges in Data Collection and Internal Collaboration
As technology advances, firms have access to a much wider variety of customer-level data necessary for CLV computing. Some of such key information includes demographics, firmographic data, purchase value, products purchased on each occasion, the number, time, and types of marketing contacts, prospects, and competitors' customers. However, not all firms have access to all of the information they need, especially information regarding prospects and competitors' customers. In the meantime, given the complexity of business settings nowadays, many firms find it challenging to identify the right informational needs, to collect the huge amount of data, and to utilize these data. Sometimes, in order to get the right information, managers will need to resort to collaborative efforts from multiple departments. Failure to properly ...