A New Way to Manage Customer Portfolios for Maximum Value

Webinar On Demand

Many leaders understand that it’s important to create closer, more valuable relationships with customers. But if they aren’t actively managing their portfolios of weaker and stronger relationships, they’re missing big opportunities, according to Fred Selnes and Michael D. Johnson.

In their latest research, Selnes and Johnson demonstrate why heavy emphasis on customer lifetime value (CLV) needs to evolve into more balanced consideration of customer portfolio lifetime value (CPLV). They show how better-informed decisions about managing an entire portfolio of customer relationships can lead to lower costs and increased revenue.

In this webinar, you will learn:

The key components and benefits of the CPLV approach, including the value of a “large leaky bucket” of customers.

Why customer heterogeneity is important toward balancing CLV and economies of scale — and increasing portfolio value.

How to segment customers by relationship strength, estimate discounted future cash flow by relationship segment, and use the information to improve financial performance across the portfolio.

Fred Selnes
Fred Selnes is a professor of marketing at BI Norwegian Business School and an adjunct professor at the University of South-Eastern Norway.
Michael D. Johnson
Michael D. Johnson is the marketing department chair at the Wisconsin School of Business, University of Wisconsin-Madison, and dean emeritus and E.M. Statler Professor Emeritus at Cornell University.
Allison Ryder
Allison Ryder is program director for MIT Sloan Management Review’s Big Ideas Initiatives. She moderated the session.


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