Customer Lifetime Value Models for Decision Support

Saharon Rosset; Einat Neumann; Uri Eick; Nurit Vatnik

doi:10.1023/A:1024036305874

Customer Lifetime Value Models for Decision Support

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

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

86 Scopus citations

Abstract

We present and discuss the important business problem of estimating the effect of marketing activities 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 describe in detail how we build on this approach to estimate the effects of retention campaigns on Lifetime Value, and also discuss its application in other situations. Our solution has been successfully implemented by the Business Insight (BI) Professional Services.

Original language	English
Pages (from-to)	321-339
Number of pages	19
Journal	Data Mining and Knowledge Discovery
Volume	7
Issue number	3
DOIs	https://doi.org/10.1023/A:1024036305874
State	Published - Jul 2003
Externally published	Yes

Keywords

Chum modeling
Length of service
Lifetime value
Retention

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10.1023/A:1024036305874

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Customer Lifetime Value Models for Decision Support

Abstract

Keywords

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