[Sven Berger, E-Finance Lab]

A competitive customer management system requires the use of adequate metrics for controlling and management. This is of particular relevance for industries focusing their value creation on marketing and sales as it is the case in retail banking. Customer Lifetime Value and related metrics are a well-accepted solution in scientific literature, but the diffusion into bank practice has not fully taken place yet. Adoption modeling can help explaining the use of Customer Lifetime Value and identify major factors of influence. A model based on the Technology-Organization-Environment framework is developed. The competitive pressure is identified as a dominating factor, but also perceived ease of use is of high relevance, whereas a negative link from firms' profitability to the adoption is revealed.