Customer lifetime value analysis in the banking industry with an emphasis on brand equity

Due to the competitiveness of the banking industry and the importance of profitability, access to customer information is essential for establishing effective relationships that serve the interests of both parties. Establishing long-term customer relationships and building brand equity are pivotal in modern banking, and thus improving relationship quality plays a key role in development of new services and customer lifetime value (CLV) measurement. The purpose of the present research is to provide a new model for CLV measurement in the banking industry with an emphasis on brand equity. This study is descriptive and a question naire is used to collect data. The population consists of all the customers of Refah Bank of Iran (with an average annual resources of at least ۵۰۰m rials), of whom ۳۸۲ are randomly selected as the sample. Data are analyzed using de-scriptive statistics in SPSS and partial least squares structural equation modeling (PLS-SEM) in SmartPLS. The results indicate the strong fit of the overall model (GOF = ۰.۷۸۲) and show the significant positive effect of brand equity on CLV.

Keywords:

Customer Lifetime Value , Brand Equity , Relationship Quality , Perceived Value , Banking