Profit-Based Model Selection for Customer Retention Using Individual Customer Lifetime Values

Profit-based feature selection using support vector machines - General framework and an application for customer retention

Churn prediction is an important application of classification models that identify those customers most likely to attrite based on their respective characteristics described by e.g. socio-demographic and behavioral variables. Since nowadays more and more of such features are captured and stored in the respective computational systems, an appropriate handling of the resulting information overlo...

Customer Selection and Profit Maximization

A New Model for Best Customer Segment Selection Using Fuzzy TOPSIS Based on Shannon Entropy

In today’s competitive market, for a business firm to win higher profit among its rivals, it is of necessity to evaluate, and rank its potential customer segments to improve its Customer Relationship Management (CRM). This brings the importance of having more efficient decision making methods considering the current fast growing information era. These decisions usually involve several criteria,...

CUSTOMER CLUSTERING BASED ON FACTORS OF CUSTOMER LIFETIME VALUE WITH DATA MINING TECHNIQUE

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,...

Modeling customer loyalty using customer lifetime value b

The definition and modeling of customer loyalty have been central issues in customer relationship management since many years. Recent papers propose solutions to detect customers that are becoming less loyal, also called churners. The churner status is then defined as a function of the volume of commercial transactions. In the context of a Belgian retail financial service company, our first con...