Assessing the Role of Customer Lifetime Value in Financial Decision-Making among Indian E-Commerce Firms

Abstract

The rapid growth of India’s e-commerce sector has reshaped consumer behavior and business strategies, creating new challenges and opportunities for financial decision-making. This study examines how Customer Lifetime Value (CLV) metrics are integrated into the financial planning and investment decisions of Indian e-commerce firms. It evaluates the effectiveness of CLV in predicting long-term profitability, optimizing marketing spend, and enhancing customer retention strategies. The study also explores the unique dynamics of the Indian market, including diverse consumer segments, digital adoption rates, and competitive pressures. By analyzing real-world data and case studies from leading Indian e-commerce companies, this research provides actionable insights on leveraging CLV to drive sustainable financial growth and competitive advantage. The findings contribute to a deeper understanding of the intersection between marketing analytics and finance in India’s rapidly evolving digital economy.