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The customer lifetime value in Taiwanese credit card market

Abstract

Qianpin Li* and Chen Chang

Evaluating customer lifetime value (CLV) is becoming increasingly important in order for firms to identify and invest the limited resources on their different customers. We showed how the publicly available information can be used to estimate the lifetime value of any credit card holder. A comparative analysis is used in this paper to explore the presumable relationship between CLV and shareholder value. And we provided a link between customer and shareholder value. The findings were expected to encourage corporate decisionmakers to rethink their customer-centric strategies by which both CLV and shareholder value might step up significantly.

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