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Customer Flow: Evaluating The Long‐term Impact Of Marketing On Value Creation

O. Tretyak, Igor Sloev
Published 2013 · Business

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Purpose – The purpose of this paper is to construct a system of indicators that will allow firms to evaluate the long‐term results of their marketing activities along the value chain.Design/methodology/approach – The paper integrates the concepts of network relationships, value chain management, and customer lifetime value (CLV). The authors use participative inquiry and case studies to validate and clarify the model.Findings – The authors develop the customer flow conceptual model and propose a sequence of actions to translate it into measures and indicators that will allow firms to understand their role in the creation of sustainable value. Using this model, the authors conduct comparative analyses of the acquisition and retention strategies of a multinational firm in the European and Russian markets. The results provide a crucial justification for new directions in future long‐term marketing activities.Research limitations/implications – The model is validated in two cases in different industries. Furt...
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