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Customer Lifetime Value in Public Services

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  • Giuseppe Cappiello

Abstract

Public administration and public services, after a slow development and successive layers, from the beginning of the 90s witnessed a significant transformation. The legislation, by choice or necessity,imposed previously unknown areas of competition in the sector. In open markets where entry and exit barriers are absent or limited andswitching costs associated with the change of supplier minimized, competition is based on the value served to the customer; in turn, the relationship with the customer is a value for the company, a financial and reputational asset on which could be founded the future strategy. This work aims to illustrate the concept of customer lifetime value and the operability of the strategy of the utility company oriented towards efficiency and effectiveness for the citizen.

Suggested Citation

  • Giuseppe Cappiello, 2012. "Customer Lifetime Value in Public Services," Economia dei Servizi, Società editrice il Mulino, issue 2, pages 273-286.
    • Handle: RePEc:mul:j1t56u:doi:10.2382/38877:y:2012:i:2:p:273-286
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