Title :
The expected net present value solution and their CLV comparison of two kinds of Markov CRM models
Author :
Bocheng, Chen ; Zhenhua, Chang ; Wenhuang, Liu ; Li Yingjie
Author_Institution :
Grad. Sch. at Shenzhen, Tsinghua Univ., Shenzhen
fDate :
June 30 2008-July 2 2008
Abstract :
Pfeifer model and its variation is the Markov chain(MC) models which should be studied in CRM(customer relationship management) analysis. We study the two kinds of model, in infinite horizon purchasing case, demonstrate their expected net present value (ENPV) solution, make a computing to their corresponding CLV (The total expected net present value in customer life cycle), then make a comparison to the CLV of the two scenarios. The study shows: the CLV will vary with the state keeping probability (SKP) changing, and the CLV in the scenario with the SKP will be better than that of without the item.
Keywords :
Markov processes; customer relationship management; CRM analysis; Markov CRM model; Markov chain model; Pfeifer model; customer life cycle; customer relationship management; expected net present value solution; infinite horizon purchasing; state keeping probability; Costs; Customer relationship management; Economic forecasting; Engineering management; Equations; Infinite horizon; Marketing and sales; Mathematical analysis; Mathematical model; Systems engineering and theory; CLV; CRM model; Markov chain;
Conference_Titel :
Service Systems and Service Management, 2008 International Conference on
Conference_Location :
Melbourne, VIC
Print_ISBN :
978-1-4244-1671-4
Electronic_ISBN :
978-1-4244-1672-1
DOI :
10.1109/ICSSSM.2008.4598527
