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 ...

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...

Abstract 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 ...

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...

Relationship marketing assumes that firms can be more profitable if they identify the most profitable customers and invest disproportionate marketing resources in them. While intuitive, such strategies presume that a firm can accurately predict the future profitability of customers. In particular, we argue that the feasibility of such strategies depends on the probabilities and costs of misclas...

Telecommunications is the todays’ leading industry. Value Added Services (VAS) is considered as one of the most money making segments of Telecom services. The purpose of this paper is to allocate promotional marketing strategies to customer segments. Therefore, a four-phase practical framework is developed to prioritize marketing strategies based on Customer Lifetime Value (CLV). The first phas...

nowadays, marketing managers are more concerned with identifying and understanding customer behavior in the online space. since the customers in online space are not visible, it is much essential to have more information about them to provide better services. customer segmentation is one way to improve the customer problems in an online space. identifying characteristics of customers and optima...

Commercial Banks and Financial Institutions are recognizing that they can no longer look at a customer from a specific product but must encompass the entire customer relationship to fully understand a client‘s profitability. From a strategic standpoint, Customer Relationship Management (CRM) mobilizes resources around customer relationships rather than product groups and fosters activities that...

The more competition among industry participants severe, the more companies try to retain their customers and acquire new customers from their competitors. To gain competitive advantage, many companies are adopting and deploying more refined and sophisticated Customer Relationship Management systems. In the marketing area, a personalized marketing paradigm has already been infiltrated into our ...