Global Journal of Management and Business Research, E: Marketing, Volume 22 Issue 2

the first measures the past, and the second looks forward. Hence, CLV enriches the managers' decisions but is hard to quantify because it involves forecasting future activity. CLV = (Avg. monthly Rev. per customer * Gross margin per customer)/Churn rate Where Churn rate = 1 – CRR According to Customer Thermometer (n.d.), “Customer Churn is the movement of customers out of your business… is also known as customer attrition, customer turnover and customer loss" (para 1, 4). The Churn Rate is the ratio of all the customers lost during a period (i.e., a month) divided by the total number of the company's customers at the beginning of the month. One does not include any new sales from that month. CLV = GC (CRR / 1 + d - CRR) Where, GC is yearly gross contribution per customer. CRR is the yearly retention rate (or 1 - Churn rate), and d is the 'yearly discount rate.' ** “Assume that contribution margin, retention rate, and discount rate are constant, and the company uses an infinite horizon timeframe when it calculates the present value of future cash flows” (Panthongpraser, 2015, p. 45). Also, according to Caldwell (2021), CLV = Average Transaction Size x Number of Transactions x Retention Period The ratio of Customer Lifetime Value to CAC (CLV: CAC): In a well-balanced business, CAC should be less than customer lifetime value, or the CLV: CAC ratio should be higher than (1 time), i.e., a higher one means the company's sales and marketing have a higher ROI. Panthongpraser (2015) offers the following comparisons: " Ratio 1:1 means you lose money the more you sell; Ratio 3:1 or better is a good target, and Ratio 4:1 or higher indicates a great business model, but in a competitive market you might be under- investing in sales and marketing" (Panthongpraser, 2015, p. 46). CAC looks at what resources the organization puts into landing new customers, while CLV examines the customers' potential value they bring to the organization. IX. P roposed R esearch M odel Figure 1 depicts the proposed research framework for this research. It also illustrates the five hypotheses to be tested. Figure 1: Proposed Research Model X. R esearch Q uestions and H ypotheses RQ1: What is the impact of internal organizational factors on the customer-centric strategy adopted by the organization? H1: Organizational structure affects the effectiveness of the customer-centric strategy. H2: Organizational culture affects the effectiveness of the customer-centric strategy. H3: Human Resources (HR) policies affect employee behavior in being customer-centric RQ2: What is the impact of technology on the customer- centric strategy adopted by the organization? H4: Adopting the right technologies enables the success of customer-centric strategies. RQ3: What are the right leadership practices that enable the success of customer-centric strategies? H5: Applying the right leadership commitment enables the success of customer-centric strategies. An Assessment of Customer-Centricity Success Factors: Context of the Lebanese Market 10 Global Journal of Management and Business Research Volume XXII Issue II Version I Year 2022 ( )E © 2022 Global Journals