In recent years, customer lifetime value (CLV) has gained increasing importance in both academia and practice. While many advanced techniques have been proposed, the recency/frequency/monetary value (RFM) segmentation framework, and its related probability models, remain a CLV mainstay. In this article, we demonstrate the de_ciency in RFM as a basis for summarizing customer history (data compre...

This paper proposes a model for customer relationship management (CRM) using iThink , which incorporates the concept of system dynamics. The proposed CRMmodel consists of module 1: a customer purchasing behavior model, module 2: a Markov chain model, and module 3: a financial returns model. By considering the marketing activities and product attractiveness to the customer, the probability that ...

business all around the world uses different approaches to know their customers, segment them and formulate suitable strategies for them. one of these approaches is calculating the value of each customer for the company. in this paper by calculating customer lifetime value (clv) for individual customers of an online toy store named alakdolak, three customer segments are extracted. the level of ...

Organizations have used Customer Lifetime Value (CLV) as an appropriate pattern to classify their customers. Data mining techniques have enabled organizations to analyze their customers’ behaviors more quantitatively. This research has been carried out to cluster customers based on factors of CLV model including length, recency, frequency, and monetary (LRFM) through data mining. Based on LRFM,...

he Tuscan Lifestyles case (Mason, 2003) offers a simple twist on the standard view of how to value a newly acquired customer, highlighting how standard retention-based approaches to the calculation of expected customer lifetime value (CLV) are not applicable in a noncontractual setting. Using the data presented in the case (a series of annual histograms showing the aggregate distribution of pur...

Studying about the customer segmentation and begetting customer ranking plan diverts more attention in recent years. In this regard, this study tries on providing a methodology for segmenting customers based on their value driver parameters which extracted from transaction data and then ranks customers with regard to their customer lifetime value (CLV) score. Discovering hidden pattern between ...

Share of wallet is a key factor in Customer relationship management system (CRM) which is an important application of E-business. Research has found that share of wallet is an important indicator to measure customer loyalty and customer potential value. On the basis of the existent marketing literatures, this study analyzes the variables influencing share of wallet according the traits of the B...

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 ...

Product recommendation is a business activity that is critical in attracting customers. Accordingly, improving the quality of a recommendation to fulfill customers’ needs is important in fiercely competitive environments. Although various recommender systems have been proposed, few have addressed the lifetime value of a customer to a firm. Generally, customer lifetime value (CLV) is evaluated i...

The aim of this study is to analyse the research gap relationship between customer citizenship behaviour (CCB) and lifetime value (CLV) in engagement framework (CE). We discuss how marketing analytics gains information from digital environment related data, metrics, online aspects predict business performance through motivational drivers engagement. divide an entire data sample (306 observation...