Abstract:

The exponential growth of global e-commerce, particularly, in the online fashion sector, has increased the demand for customer-centric analytical frameworks. Customer Lifetime Value (CLV) is a metric for identifying profitable customers, optimizing marketing strategies, and improving return on investment. While traditional CLV models rely primarily on transactional and financial data, they often overlook behavioral, emotional, and social factors that influence customer decisions in digital markets. This study explores the non-financial factors affecting CLV in Saudi Arabia’s online fashion e-commerce sector. A survey-based methodology was employed, collecting 779 valid responses from customers who made online purchases and lived in Saudi Arabia. CLV was measured from the customer perspective using loyalty, usage quantity, and word-of-mouth dimensions. Both regression and correlation analysis were applied to test nineteen hypotheses derived from the literature. The results showed that four hypotheses were rejected based on hypothesis testing, including age (p-value =0.194), brand experience (p-value =0.154), social proof and influencer marketing (p-value =0.205), and price (p-value =0.666). The rest of the hypotheses were accepted. This research can contribute to a robust customer-centric predictive model that enhances the accuracy of CLV estimation using non-financial data, filling a critical gap in the existing literature.