Customer Lifetime Value (CLV) in SME Banking: Strategic Branding and Relationship Building

Customer Lifetime Value (CLV) is a critical metric for understanding the long-term profitability of customer relationships in the banking sector, particularly for Small and Medium Enterprises (SMEs). This study explores the role of CLV in enhancing brand loyalty, customer retention, and strategic growth for Septemberbank in the West Java region. By integrating branding theories, relationship trust models, and qualitative insights from Septemberbank’s internal and external stakeholders, this paper identifies key drivers that influence CLV and proposes actionable strategies for maximizing customer lifetime revenue. The research employs a qualitative descriptive approach, including semi-structured interviews with SME clients and internal banking personnel, alongside secondary data analysis. Findings highlight the importance of trust, personalized services, and structured referral programs in building long-term relationships with SME customers, thereby increasing their lifetime value to the bank.