In order to generate profits, company must optimize the profitability of itscustomers. Each customer has different characteristics. Companies need customerrelationship management (CRM) to provide the best service which brings profits.PT XYZ is agriculture company who has competitive products but the volume ofsales and the number of customers decreased. This is a qualitative study with casestudy approach. A model developed by Gupta and Lehman (2005) is used tocalculate customer lifetime value (CLV). The results show that the frequency oftransactions is not automatically proportional to CLV. In addition, companies mustbe able to analyze CLV trends of each customer to maximize customer profitability.Moreover, the results found a perspective from company that sugar products willalways be sold out. The company does not have enough information technologydevices to support CRM. These factors are believed to inhibit CRMimplementation.
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