Sunil Gupta,“Customer Value in a Networked Society.”

Sunil Gupta SC 100x146

One popular metric for demonstrating marketing ROI is customer lifetime value (CLV), the present value of all future profits generated by a customer. Past research has found CLV helpful in the allocation of resources for customer acquisition, retention, and segmentation, and even in firm valuation. CLV, though, measures a customer’s profitability independent from other customers—a serious limitation in a networked society where consumer behavior is heavily influenced by the behavior of other consumers. Gupta will explore this limitation and remedies that might make CLV a more fine-tuned metric for our increasingly interconnected global marketplace.