Evaluating Gaming Customers Using the LTV Concept

11 February 2002

Dyed-in-the-wool marketing executives are in the habit of saying that all their customers are important. All customers are never equally important in any business and the gaming business is no exception. Casino management, by default, deals with customers on the basis of their perceived value to the casino. But how does one objectively prioritize the importance of a particular customer or a customer group? The answer is simple: Look at the lifetime value of a customer. A recent Deloitte Consulting study shows that companies who understand customer value are 60 percent more profitable than those that do not.

Click here to view "Evaluating Gaming Customers Using the LTV Concept" in MS Word format (originally published Jan. 28, 2002 at www.urbino.net).

Sudhir Kalé is Associate Professor of Marketing at Bond University in Australia. He is also a marketing trainer and consultant for several types of companies including gaming. Sudhir’s research on marketing, social psychology, and cross-cultural communication has been published in leading international journals. Top companies the world over have benefited from his holistic approach to issues in marketing and management. Sudhir’s e-mail address is Sudhir_Kale@Bond.edu.au. Address for correspondence: School of Business, Bond University, QLD 4220, Australia.