This article provides an introduction and overview of this special issue on "Managing Customers for Value." The field of customer management has grown rapidly in recent years, with significant research examining approaches with which firms can manage customers as key assets. Starting with the notion that firms seek to maximize customer lifetime value and customer equity, the authors identify eight key challenges that firms and researchers face in understanding, managing, and implementing successful customer management strategies. The authors then present an organizing framework and use it to offer an overview of the rest of the special issue, outlining how each of the remaining articles in the special issue (each addressing one of the key challenges) fits in the framework. Based on a synthesis of the overall insights from the articles, the authors conclude with a research agenda that highlights potentially fruitful avenues for further investigation.

As modern economies become predominately service-based, companies increasingly derive revenue from the creation and sustenance of long-term relationships with their customers. In such an environment, marketing serves the purpose of maximizing customer lifetime value (CLV) and customer equity, which is the sum of the lifetime values of the company's customers. This article reviews a number of implementable CLV models that are useful for market segmentation and the allocation of marketing resources for acquisition, retention, and cross-selling. The authors review several empirical insights that were obtained from these models and conclude with an agenda of areas that are in need of further research.

This article develops a framework for assessing how marketing actions affect customers’ lifetime value to the firm. The framework is organized around four critical actions that firms must take to effectively manage the asset value of the customer base: database creation, market segmentation, forecasting customer purchase behavior, and resource allocation. In this framework, customer lifetime value is treated as a dynamic construct, that is, it influences the eventual allocation of marketing resources but is also influence by that allocation. By reviewing customers as assets and systematically managing these assets, a firm can identify the most appropriate marketing actions to acquire, maintain, and enhance customer assets and thereby maximize financial returns. The article discusses in detail how to assess customer lifetime value and manage customers as assets. Then, it identifies key research challenges in studying customer asset management and the managerial challenges associated with implementing effective customer asset management practices.