Customer Lifetime Value: Value Analysis of Customers for a Cellular Phone Operator - The Vivo Case

Authors

  • Jorge Brantes Ferreira Puc-Rio
  • Angilberto Sabino de Freitas Unigranrio - U. do Grande Rio
  • Cristiane Junqueira Giovannini Puc-Rio

DOI:

https://doi.org/10.5585/remark.v11i3.2352

Keywords:

Customer Lifetime Value, Mobile Operator, Mobile Phone, Customer retention, Firm's value.

Abstract

The objective of this study is to evaluate customer value for a mobile operator (VIVO), based on the Customer Lifetime Value model (CLV), with the purpose of analyzing how the Brazilian mobile operators‟ industry evaluates its customers and the impact this evaluation might have on retaining customers, especially among those considered to be highly valuable. Supported by the company's annual report and internally collected data, CLV calculations were developed in order to understand how the company's handset subsidies policy could be structured around customer value. The results of this case study show clear differences in value between customer segments, indicating that visions of value and customer management present in the literature are important steps to increase a firm's value strategic management. 

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Author Biographies

Jorge Brantes Ferreira, Puc-Rio

Doutor em Administração pelo Coppead e prof. auxiliar do Programa de Pós-Graduação em Administração do IAG Puc-Rio. Atua nas áreas de marketing e novas tecnologias.

Angilberto Sabino de Freitas, Unigranrio - U. do Grande Rio

Doutor em Administração pela PUC-Rio e prof. Adjunto do Programa de Pós-Graduação em Administração da Unigranrio. Atua nas áreas de estratégia, marketing e gestão de tecnologias.

Cristiane Junqueira Giovannini, Puc-Rio

Mestranda do Programa de Pós-Graduação em Administração do IAG Puc-Rio.

Published

2012-12-26

How to Cite

Ferreira, J. B., Freitas, A. S. de, & Giovannini, C. J. (2012). Customer Lifetime Value: Value Analysis of Customers for a Cellular Phone Operator - The Vivo Case. ReMark - Revista Brasileira De Marketing, 11(3), 75–100. https://doi.org/10.5585/remark.v11i3.2352