Customer lifetime value creation through customer engagement in social media: A conceptual framework

Abstract

In the age of digital media, concept of customer engagement has excited the marketers tremendously, and firms are now recognizing their most profitable customers who can co-create value for them. This paper is an attempt to find out the role of customer engagement in creating value through brand communities in social media, and since the firms want to maximize the customer lifetime value (CLV) of their consumers, this paper highlights the various challenges encountered by the firms in understanding and incorporating successful engagement strategies to maximize the CLV. This article proposes that customer engagement in social media enhances co-creation of value by virtue of contributions, perceptions, preferences, or expectations of consumers toward the brand or firm in the form of learning and sharing positive/negative word of mouth in social media.