Citizen Lifetime Value in E-Government

Customer Lifetime Value (CLV) is one of the most important measures of valuing the customers in private sector. CLV calculates customer contribution in the profits of organization. In this paper Citizen Lifetime Value (CzLV) is introduced to measure the financial value of citizens for the government. CzLV evaluates citizen contribution in cost reduction of the organization. This measure can be calculated based on past behavior of citizens in using the service and cost reduction of using online services rather than offline ones. Logistic regression is employed as a data mining technique to predict future use of online services by citizens. A service of Tehran.ir called “137,” one of the most important portals of Iran’s E-government, is considered as a case study. CzLV for the citizens of this service is calculated and four citizen segments are specified. Then each segment is evaluated based on different characteristic of citizens, and suitable strategies are presented to build more financial values for the organization. DOI: 10.4018/978-1-4666-3631-6.ch012