The marketing literature has long acknowledged the importance of a customer’s lifetime value in customer relationship management. More recently, researchers have turned their attention to the links between satisfaction and both customer acquisition and retention strategies. In this paper, we study how to best communicate with a database of customers, taking into account that customers are able ...

The marketing literature has long acknowledged the importance of a customer’s lifetime value in customer relationship management. More recently, researchers have turned their attention to the links between satisfaction and both customer acquisition and retention strategies. In this paper, we study how to best communicate with a database of customers, taking into account that customers are able ...

Most companies offering prepaid mobile services destroy value by ignoring customer lifecycle management, an approach used successfully in many other service industries. Instead of tailoring marketing strategies to the behavior and probable lifetime value of specific customer groups, these mobile operators often deploy blanket promotions that give away value needlessly through discounts or free ...

The authors develop a framework that incorporates projected profitability of customers in the computation of lifetime duration. Furthermore, the authors identify factors under a manager’s control that explain the variation in the profitable lifetime duration. They also compare other frameworks with the traditional methods such as the recency, frequency, and monetary value framework and past cus...

Data mining methodology has a tremendous contribution for extracting the hidden knowledge and patterns from the existing databases. Traditionally, researchers use basket data to mine association rules of which the basic task is to find the frequent items. For relational databases whose data format is relational data other than basket data, RDB-MINER algorithm was proposed. In this paper, we int...

We develop and estimate a stochastic model of patient compliance and persistence regarding pharmaceutical drugs. Persistence refers to whether a patient continues with therapy, i.e., whether the patient continues to obtain refills of the drug. Compliance refers to whether the customer obtains a refill on time, given he or she does in fact obtain a refill. We develop a simple stochastic model of...

T article illustrates how simulation can be used in the classroom for modeling customer behavior in the context of customer lifetime value estimation. Operations research instructors could use this exercise to introduce multiperiod spreadsheet simulation models in a business setting that is of great importance in practice, and the simulation approach to teaching this subject could be of interes...