Managing customer profitability using portfolio matrices

Introducing Busy Customer Portfolio Using Hidden Markov Model

Due to the effective role of Markov models in customer relationship management (CRM), there is a lack of comprehensive literature review which contains all related literatures. In this paper the focus is on academic databases to find all the articles that had been published in 2011 and earlier. One hundred articles were identified and reviewed to find direct relevance for applying Markov models...

Customer portfolio analysis using the SOM

In order to compete for profitable customers, companies are looking to add value using Customer Relationship Management (CRM). One subset of CRM is customer segmentation, which is the process of dividing customers into groups based upon common features or needs. Segmentation methods can be used for customer portfolio analysis (CPA), the process of analyzing the profitability of customers. This ...

Manage Customer Loyalty and Profitability

Customer Profitability Analysis and Market Valuation: Differential Pricing and the Comparative Profitability of Major Customer Sales

In this study, I investigate whether inferences drawn from customer profitability analysis (CPA) are associated with the information set used by investors valuing firms’ equity. This research question is motivated by the recent emergence of CPA as the most important aspect of strategic planning for managers (e.g., Foster and Young 1997). To the extent that managers use CPA in developing strateg...

Social Engagement and Customer Profitability in Online Customer Networks

The rapid growth of the Internet has led to a revolution in the relationship between customers and companies. After the first experiences on social media platforms, companies started hosting their own online customer networks where formerly passive consuming customers are able to connect, share, and cooperate with each other and the company. This social engagement of customers is generally cons...