A Framework Towards Customer Lifetime Value’s Macro and Micro Dimensions in the Service Sector: A State-of-the-Art Review

Abstract

Today, the role of customer relationship management as a strategic tool in the development of production and service organizations as well as attracting and retaining customers in competitive industries is undeniable. The main core of customer relationship management is identifying, valuing, segmenting customers and optimally allocating resources to customers according to the value they bring to the organization. Customer lifetime value is a tool for calculating the value that a customer brings to businesses during the lifetime of their relationship. The purpose of this article is to present the framework of variables affecting CLV in the service sector by systematic review method. 83 variables were extracted from the 31 final selected articles in the field of CLV in various service industries. Based on the results, five categories of variables have an effect on CLV in the service sector, which include customer variables, financial variables, product variables, selling variables, and demographic variables.