Customer Lifetime Value Models for Decision Support

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

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


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 languageEnglish
Pages (from-to)321-339
Number of pages19
JournalData Mining and Knowledge Discovery
Issue number3
StatePublished - Jul 2003
Externally publishedYes


  • Chum modeling
  • Length of service
  • Lifetime value
  • Retention


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