Analysis of customer profitability is the foundation of competitiveness and strength of the market position of the company. Measuring customer profitability is one of the activities of each company, which in its operations follow the main marketing principles in order to improve effectiveness of marketing strategies. The thesis researched the possibility of using two models of customer profitability, customer lifetime value (CLV) and RFM model, in retail establishments, as a measure to select customers and comparison of the results of these models. For the calculation of lifetime value of the customer and the customer's profitability, based on data for 2013 and 2014, taken from company’s database, four formulas were selected. The selection of formulas was conditioned by the given data, corrected by the company in such a way that each data was multiplied by a certain coefficient. The results obtained by analyzing the processed data for the model of lifetime value of the customer in the conducted research are approximately the same. Based on the analysis it has been observed that the results of CLV model, using the selected formula, show a more accurate distribution among customers, the profitable and unprofitable customers in relation to the RFM model. The CLV method and RFM method proposes managers to focus on profitable customers, their attraction and retention. But in the euphoria of attraction and focus on the most profitable customers, they should be careful and try to avoid excessive congestion of customers, because otherwise it could lead to adverse effects, and that is their transition to the competition.