EXPLORING THE DRIVERS OF CUSTOMER LIFETIME VALUES IN NIGERIA

Abstract

In today’s highly competitive and dynamic business environment, organizations are increasingly shifting their focus from short-term transactions to long-term customer relationships. One concept that has gained significant attention in marketing and strategic management literature is Customer Lifetime Value in Nigeria (CLV). This study investigates the key drivers of CLV The primary objective is to examine the drivers influencing CLV, with specific objectives to assess the effects of customer relationship management on customer lifetime value, influence of service quality on customer lifetime value, impact of customer satisfaction on customer lifetime value, effect of customer loyalty programmes on customer lifetime value The study adopts Social Exchange Theory (SET) as the theoretical framework, positing that relationships are sustained when perceived benefits outweigh costs, with trust and commitment as central mediators of long-term customer value. Empirical literature reveals that while developed markets emphasize technology-driven personalization and experiential engagement, emerging markets (including Nigeria) rely more on relational trust, perceived value, and resilience to economic and environmental shocks.
Most studies focus on major urban centres, leaving regional variations and contextual nuances largely unexplored. This research fills the gap by providing a localized CLV model that integrates global frameworks with Nigeria-specific factors such as perceived online risk, digital infrastructure reliability, cultural preference for personal relationships, and environmental disruptions. The study contributes context-specific insights for hotel operators, policymakers, and investors. In conclusion, enhancing CLV requires deliberate focus on trust-building, personalized experiences, and service consistency. Recommendations include targeted staff training on service recovery and personalization, adoption of affordable CRM tools, seasonal marketing packages, and policy support for infrastructure improvements to drive sustainable hospitality growth.