Customer lifetime value modeling and its use for customer retention planning

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

Research output: Contribution to conferencePaperpeer-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 languageEnglish
Pages332-340
Number of pages9
DOIs
StatePublished - 2002
Externally publishedYes
EventKDD - 2002 Proceedings of the Eight ACM SIGKDD International Conference on Knowledge Discovery and Data Mining - Edmonton, Alta, Canada
Duration: 23 Jul 200226 Jul 2002

Conference

ConferenceKDD - 2002 Proceedings of the Eight ACM SIGKDD International Conference on Knowledge Discovery and Data Mining
Country/TerritoryCanada
CityEdmonton, Alta
Period23/07/0226/07/02

Keywords

  • Churn modeling
  • Incentive allocation
  • Length of service
  • Lifetime value
  • Retention campaign

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