Assessment of Factors Affecting Customer Lifetime Value on the Example of Russian Banking Sector

The current research aims to examine the impact of the transactional group of factors on Customer Lifetime Value (CLV) in the Russian banking sector, with special emphasis on identifying and evaluating these determinants using a quantitative research approach. This study relies on a Theory of Customer Valuation (CVT) (Kumar, 2018) and employs secondary data obtained through a method of stratified random sampling (15 000 clients) from a subset of the 33 million customers of one of the largest commercial banks in Russia, aiming to provide insights representative of the broader population. The quantitative component of the research implements ordinary least squares (OLS) linear regression modeling to discover which banking clients' transactional characteristics impact the CLV metric. The results of the present paper reveal a statistically significant relationship between this group of factors and the variable of interest, taking into consideration the socio-demographic and behavioral features of customers. Therefore, it offers an extension of the scientific field by expanding the growing body of empirical research on the factors affecting Customer Lifetime Value. In conclusion, the provided findings fill the literature gap and are applicable for developing short- and long-term strategies to maximize the lifetime value of customers in the banking sector in Russia.