Customer lifetime value modeling and its use for customer retention planning

Saharon Rosset; Einat Neumann; Uri Eick; Nurit Vatnik; Yizhak Idan

doi:10.1145/775047.775097

Customer lifetime value modeling and its use for customer retention planning

Saharon Rosset^*, Einat Neumann, Uri Eick, Nurit Vatnik, Yizhak Idan

^*Corresponding author for this work

Research output: Contribution to conference › Paper › peer-review

Abstract

We present and discuss the important business problem of estimating the effect of retention efforts on the Lifetime Value of a customer in the Telecommunications industry. We discuss the components of this problem, in particular customer value and length of service (or tenure) modeling, and present a novel segment-based approach, motivated by the segment-level view marketing analysts usually employ. We then describe how we build on this approach to estimate the effects of retention on Lifetime Value. Our solution has been successfully implemented in Amdocs' Business Insight (BI) platform, and we illustrate its usefulness in real-world scenarios.

Original language	English
Pages	332-340
Number of pages	9
DOIs	https://doi.org/10.1145/775047.775097
State	Published - 2002
Externally published	Yes
Event	KDD - 2002 Proceedings of the Eight ACM SIGKDD International Conference on Knowledge Discovery and Data Mining - Edmonton, Alta, Canada Duration: 23 Jul 2002 → 26 Jul 2002

Conference

Conference	KDD - 2002 Proceedings of the Eight ACM SIGKDD International Conference on Knowledge Discovery and Data Mining
Country/Territory	Canada
City	Edmonton, Alta
Period	23/07/02 → 26/07/02

Keywords

Churn modeling
Incentive allocation
Length of service
Lifetime value
Retention campaign

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10.1145/775047.775097

Cite this

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abstract = "We present and discuss the important business problem of estimating the effect of retention efforts on the Lifetime Value of a customer in the Telecommunications industry. We discuss the components of this problem, in particular customer value and length of service (or tenure) modeling, and present a novel segment-based approach, motivated by the segment-level view marketing analysts usually employ. We then describe how we build on this approach to estimate the effects of retention on Lifetime Value. Our solution has been successfully implemented in Amdocs' Business Insight (BI) platform, and we illustrate its usefulness in real-world scenarios.",

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author = "Saharon Rosset and Einat Neumann and Uri Eick and Nurit Vatnik and Yizhak Idan",

year = "2002",

doi = "10.1145/775047.775097",

language = "אנגלית",

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AU - Neumann, Einat

AU - Eick, Uri

AU - Vatnik, Nurit

AU - Idan, Yizhak

PY - 2002

Y1 - 2002

N2 - We present and discuss the important business problem of estimating the effect of retention efforts on the Lifetime Value of a customer in the Telecommunications industry. We discuss the components of this problem, in particular customer value and length of service (or tenure) modeling, and present a novel segment-based approach, motivated by the segment-level view marketing analysts usually employ. We then describe how we build on this approach to estimate the effects of retention on Lifetime Value. Our solution has been successfully implemented in Amdocs' Business Insight (BI) platform, and we illustrate its usefulness in real-world scenarios.

AB - We present and discuss the important business problem of estimating the effect of retention efforts on the Lifetime Value of a customer in the Telecommunications industry. We discuss the components of this problem, in particular customer value and length of service (or tenure) modeling, and present a novel segment-based approach, motivated by the segment-level view marketing analysts usually employ. We then describe how we build on this approach to estimate the effects of retention on Lifetime Value. Our solution has been successfully implemented in Amdocs' Business Insight (BI) platform, and we illustrate its usefulness in real-world scenarios.

KW - Churn modeling

KW - Incentive allocation

KW - Length of service

KW - Lifetime value

KW - Retention campaign

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T2 - KDD - 2002 Proceedings of the Eight ACM SIGKDD International Conference on Knowledge Discovery and Data Mining

Y2 - 23 July 2002 through 26 July 2002

ER -

Customer lifetime value modeling and its use for customer retention planning

Abstract

Conference

Keywords

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