MIT SMR: A New Way to Manage Customer Portfolios for Maximum Value

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 the heavy emphasis on customer lifetime value (CLV) needs to evolve into a 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.