This paper proposes a novel approach to the estimation of Customer Lifetime Value (CLV). CLV measures give an indication of the profit-generating potential of customers, and provide a key business tool for the customer management process. The performances of existing approaches are unsatisfactory in multi-service financial environments because of the high degree of heterogeneity in customer beh...

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...

Business all around the world uses different approaches to know their customers, segment them and formulate suitable strategies for them. One of these approaches is calculating the value of each customer for the company. In this paper by calculating Customer Lifetime Value (CLV) for individual customers of an online toy store named Alakdolak, three customer segments are extracted. The level of ...

Due to competitive environment, companies want to create a durable relationship with their customers. Building effective customer relationship management, companies should estimate customer lifetime value (CLV). CLV is normally calculated in terms of recency, frequency and monetary (RFM) variables. Allocating resource to customers’ segments regarding to communication channel based on CLV can be...

To predict the profitability of a customer, today’s firms have to practice Customer Lifetime Value (CLV) computation. Different approaches are proposed in the last ten years to analyze the complex customer phenomenon. One of them is Markov Decision Process (MDP) model. The class of Markov Models is an effective and a flexibility decision model. Whereas the use of MDP model is limited by its ass...

Der Customer Lifetime Value (CLV) hat sich als zentrale Größe zur Beurteilung und Gestaltung von Kundenbeziehungen etabliert. Während intuitiv verständlich ist, dass Verträge mit einem positiven Wertbeitrag stets angeboten werden, stellt sich die Frage, ob und wann sich auch der Abschluss von Verträgen mit einem negativen Wertbeitrag lohnt, um zukünftig profitable Geschäfte mit dem Kunden zu tä...

The move towards a customer-centred approach to marketing, coupled with the increasing availability of customer transaction data, has led to an interest in understanding and estimating customer lifetime value (CLV). Several authors point out that, when evaluating customer profitability, profitable customers are rare compared to the unprofitable ones. In spite of this, most authors fail to recog...

Abstract The purpose of this paper is to explore the role WeChat mobile-payment (m-payment)-based smart technologies in improving retail customer experience and develop an integrated framework including antecedents, consequences, moderators. Based on stimulus-organism-response (SOR) paradigm, we investigated relationships among socio-technical stimuli, experience, relationship quality. We also ...

Due to the increasing importance placed on customer equity in today's business environment, many companies are focusing notion of loyalty and profitability increase market share. Building a successful Customer Relationship Management (CRM), company starts from identifying true value because can provide basic information spread more targeted personalized marketing. In this paper, lifetime (CLV) ...