Journal of Marketing Management

Moderating Effects of Customer Lifetime Value and Referral Value on Customer Service of Frontline Employees for Customer and Organizational Satisfaction: A Comparative Analysis
Dhameeth, G.D; Dissanayake, D.M.R, Gagnon, D; Shannon,C.

Abstract
The increasing magnitude of the competition in the marketplace, locally and globally, has influenced many organizations to revamp their strategy for reaching, acquiring, maintaining, and retaining customers to enhance future survival and growth. In this context, companies are at a juncture for making investment decisions on their Customer Relationship Marketing (CRM) to leverage marketing efficiency. In the aforementioned holistic exercise, Customer Lifetime Value (CLV) and Customer Referral Value (CRV) play a significant role in seeing the future cash flow value of customers. Despite understanding the importance of this strategy at the senior level in organizations, it is apparent that frontline employees, who have a high level of customer interaction at the operational level, have not been able to conceive and apply the above two orientations when serving their customers. As a result, many companies have experienced downturns in aspects, such as loyal and satisfied customers, turnover, market share, inventory management, profits, and share values. Data suggest that Customer Service Orientation (COS) is a key variable that influences Customer and Organizational Satisfaction regardless of the industry and that CLV and CRV do not significantly influence Customer and Organizational Satisfaction. However, when compared to the financial industry, sales staff training investments on CLV and CRV orientations pay back high returns in the retail industry.

Full Text: PDF     DOI: 10.15640/jmm.v8n2a6