We examine customer acquisition under budget constraints. Marketers often compare customer lifetime value (CLV) with acquisition spending to project returns but such simple marketing return on investment (SMROI) metrics are biased wherever retention spending occurs. Omitting retention...

We study the optimal customer-acquisition and customer-retention decisions over an infinite planning horizon of the representative firm in a monopolistically competitive industry. Both the long-term and short-term equilibria of the industry are characterized by a constant optimal retention rate....

We consider the problem of optimal allocation of the marketing budget between customer acquisition and customer retention by a firm over the trade cycle. In line with the Schumpeterian idea of creative destruction, we find that under perfect capital markets customer retention increases with the...

Using a large-scale experiment involving 3.7 million treated subjects on Yahoo!, we measure the ability of online display advertising to cause new account sign-ups at an online business. We experiment with two dimensions of media choice: banner-shaped ads versus large rectangular ads, and Yahoo!...

Cross-selling is an old and valuable technique used by salespeople to increase order size and to transform single-product buyers into multi-product ones. More recently, cross-selling has evolved into a strategy for customer relationship management. This article starts with a discussion of the...

The burgeoning app economy increasingly drives growth in today's service sector. We study a dataset encompassing apps' daily, weekly, and monthly usership time series and show how its nested-echelon structure allows researchers to reliably infer how and when an app's customers adopt, use, and...