Title of article :
A Stochastic Approach for Valuing Customers
Author/Authors :
EsmaeiliGookeh, Mahsa Strategic Intelligence Laboratory - Industrial Engineering Department K.N. Toosi University of Technology, Tehran , Tarokh, Mohammad Jafar Strategic Intelligence Laboratory - Industrial Engineering Department K.N. Toosi University of Technology, Tehran
Pages :
8
From page :
59
To page :
66
Abstract :
The present study attempts to develop a new model for computing customer lifetime value. The customer lifetime value defined in this paper is the combination of present value and future value. As an innovation the CLV modeling of this paper is based on customer behavior modeling, done by data mining techniques. By extracting the profit vector related to each type of customer behavior, calculation of present study was done, then by utilizing Markov chain model we predict future value and count customer lifetime value. A new churn model was contributed by authors to manage unprofitable CRM costs; utilizing this churn model, the proposed CLV model can cause more profitability for the enterprise. The new CLV model of this paper was validated by historical customer data of a composite manufacturing company.
Keywords :
customer , present value , future value , customer behavior , Markov chain model , data mining
Journal title :
Astroparticle Physics
Serial Year :
2017
Record number :
2452602
Link To Document :
بازگشت