The paper "Customer Lifetime Value: Marketing Models and Applications" by Paul D. Berger and Nada I. Nasr explores the concept of Customer Lifetime Value (CLV) in marketing. CLV, which measures the economic worth of a customer over their relationship with a company, has been a significant topic in direct response marketing and general marketing. However, most literature on CLV has focused on its use as a decision-making criterion and presented isolated numerical examples without a systematic theoretical framework. The authors present a series of mathematical models for determining CLV, based on a systematic theoretical taxonomy and assumptions grounded in customer behavior. These models are designed to handle various customer behavior scenarios, including customer retention and migration. The paper also discusses managerial applications of these models, such as optimizing the allocation of promotional budgets between acquisition and retention. Key contributions of the paper include: 1. A systematic general approach to computing CLV. 2. General mathematical formulations that are less context-specific compared to previous discussions. 3. Managerial applications, such as optimizing promotional budget allocation. The paper concludes by suggesting areas for future research, including the study of more complex cases and the integration of brand loyalty measures into CLV models.The paper "Customer Lifetime Value: Marketing Models and Applications" by Paul D. Berger and Nada I. Nasr explores the concept of Customer Lifetime Value (CLV) in marketing. CLV, which measures the economic worth of a customer over their relationship with a company, has been a significant topic in direct response marketing and general marketing. However, most literature on CLV has focused on its use as a decision-making criterion and presented isolated numerical examples without a systematic theoretical framework. The authors present a series of mathematical models for determining CLV, based on a systematic theoretical taxonomy and assumptions grounded in customer behavior. These models are designed to handle various customer behavior scenarios, including customer retention and migration. The paper also discusses managerial applications of these models, such as optimizing the allocation of promotional budgets between acquisition and retention. Key contributions of the paper include: 1. A systematic general approach to computing CLV. 2. General mathematical formulations that are less context-specific compared to previous discussions. 3. Managerial applications, such as optimizing promotional budget allocation. The paper concludes by suggesting areas for future research, including the study of more complex cases and the integration of brand loyalty measures into CLV models.