Managing Customer Lifetime Value Successfully  

Mentor: Marco Macoratti, Head of Sustainable Business Solutions at Mondi Group, Vienna 

Description: This Virtual Global Experience focusses on the concept of Customer Lifetime Value (CLV). Customers’ purchasing behaviors are described by their industry, the supply market, its own size of business, share in supplier’s business, and decision making profiles. Due to the multi-dimensional aspects of a customer relationship, it is challenging to evaluate what really drives value to the business: the product, the service, the relationship, the context, or the people. CRMs are indeed designed to collect data to validate the strength of independent variables (qualitative and quantitative) to dependent variables (business value).

The mentor will provide a short list of relevant literature and hold meetings to help participants obtain foundational information on CLV in the beginning stages of the project. Participants will then be asked to examine the application (and implications) of CLV in business operations in a B2B environment with a customer-focussed mindset. This work will be done by creating an Excel model with the mentor, which will allow participants to simulate a data set and validate the model. The project concludes with a group presentation on the model and a report, which explains how the following central questions were answered throughout the course of the virtual internship: