A Conceptual Framework for Evaluating Marketing Relationships in Professional Sport Franchises

Abstract

As information technology has become more accessible, service marketers have started to adopt relationship-marketing tenets and techniques. Given the large number of sport and entertainment options, and the shift in emphasis from acquiring to retaining customers, sport marketers have also begun to embrace relationship marketing.

The standard measure of customer relationship value is lifetime value (LTV). Although LTV gives provides information regarding current and projected customer financial value, it fails to offer insights for improving retention levels and strengthening relationships with customers.

This paper makes a theoretical and managerial contribution by developing a conceptual framework that incorporates relationship measures into our traditional understanding of customer. This approach provides managers with a more comprehensive valuation of their customer base, as well as a framework for improving their relationship with current customers.

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