Title:	AN APPROACH FOR ASSESSING PERFORMANCE BASED ON CUSTOMER VALUE IN BANKING INDUSTRY
Author(s):	Neda Abdolvand , Amir Albadvi
ISBN:	978-972-8924-97-3
Editors:	Hans Weghorn and Pedro Isaías
Year:	2009
Edition:	V I, 2
Keywords:	Customer Relationship Management (CRM), Customer lifetime Value (CLV), Performance Measurement, Performance Management System, Banking.
Type:	Full Paper
First Page:	173
Last Page:	180
Language:	English
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Full Contents:	click to dowload
Paper Abstract:	Information systems (IS) have a potential to bring success for the enterprises. However, it depends on how managerial knowledge could be extracted from various IS. This paper considers customer relationship management (CRM) and performance management systems (PMS) and suggests a new approach to provide a more comprehensive view for the management and to facilitate decision making on more effective strategies. CRM, as a business strategy, has gained significant importance in the field of IS in recent years. Organizations have recognized that building a dynamic substantial relationship with individual customers may lead to sustained business success. Customer has gained more attention as one of the most important and valuable assets for every enterprise. Enterprises attempt to retain customers to increase their value. Customer life-time value (CLV) measures the value of customers in their life-time and has various applications in customer segmentation, marketing decision, etc. Researchers and practitioners have paid attention to performance assessment, for several decades. Particularly, the performance has always exerted significant influence on the bank’s operation. It helps managers in investigating efficiency of various decision making units including the branches of a bank. The novelty of this research is that it proposes the application of CLV as a financial metric in strategic decision making in performance measurement. Hence, this paper presents a framework for assessing the performance of bank branches based on the CLV. This research follows a performance assessment approach using data envelopment analysis (DEA) and based on CLV, which can bring value for both customers and shareholders.
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