Interval-estimation for Measuring Customer Equity

As business moves from transaction-centric to customer-centric, customer equity and metrics are becoming a strategic focus in marketing practice. Using statistical method,this paper seeks to classify the customer categories, explore the change rules of the expenditure of the customer category, and develop the interval-estimation of customer equity. The estimation method may accurately predict customers´ future expenditure by classification. Since the interval-estimation may reflect customer equity to be a random variable, it offers high quality metrics as a reference to marketing decisions.