A New Approach for Performance Management in Banking Industry based on CLV

Performance management has been a significant area of research for both researchers and practitioners for several decades. As an ongoing improvement in performance management, new leading, collaborative, managerial and “close to customers” measures should be introduced based on the literature. This research suggests an integration of customer relationship management system and PMS. Organizations have recognized that building a dynamic substantial relationship with individual customers may lead to sustained business success. Customer has gained more attention as one of the most important and valuable assets for every enterprise. Enterprises attempt to retain customers to increase their value. The novelty of this research is that it proposes the application of CLV as a financial metric in strategic decision making in performance measurement. This research has studied empirically in banking industry in assessing branches performance. In fact, the performance has always exerted significant influence on the bank’s operation. It helps managers in investigating efficiency of various decision making units including the branches of a bank. This research follows a performance assessment approach using data envelopment analysis (DEA) and based on CLV, which can bring value for both customers and shareholders