This paper explains one of the most useful regulations in relation with managers and customers known as “CRM” . ”CRM“ is an acronym which is comprised of three main words , “CUSTOMER” , “RELATOINSHIP” & “MANAGEMENT” .”CRM“ includes all aspects of the exchange with customers and make whole elements within an organization relevant which are in relationship with customers .one of the most importan...

Customer Relationship Management generally uses the value of customers to allocate marketing budget. But marketing interventions generally change the customer behavior, turning upside-down the customers ranking based on their initial valuations and making the budget allocation suboptimal. Rational Managers should allocate the marketing budget to maximize the expected net present value of future...

The concept of the lifetime value of a customer is well established in the theory and practice of database marketing. The lifetime value of a customer, defined to be the expected present value of the net cash flows from the firm’s relationship with the customer over his or her lifetime, is often used as an upper limit on spending to acquire the customer. If the expected cash flows from the rela...

The customers who buy the most from you are probably not your best marketers. What's more, your best marketers may be worth far more to your company than your most enthusiastic consumers. Those are the conclusions of professors Kumar and Petersen at the University of Connecticut and professor Leone at Ohio State University, who analyzed thousands of customers in research focused on a telecommun...

We develop a framework to estimate the impact of service quality on expected customer lifetime value (ECLV) in non-contractual settings. Based on a latent attrition model, we incorporate covariates that reflect the quality of service requested and received for each transaction. We find that service quality affects customer lifetimes asymmetrically, with the failure to meet customer expectations...