دانلود مقاله:
Customer Lifetime Value (CLV) Measurement
Based on RFM Model
Babak Sohrabi1, Amir Khanlari2
1. Assistant professor, School of Management, University of Tehran
2. PhD student of Marketing, School of Management,
University of Tehran
(Received: 9/Apr/2007; Accepted: 10/June/2007)
Abstract
Nowadays companies increasingly derive revenue from the creation and
sustenance of long-term relationships with their customers. In such an
environment, marketing serves the purpose of maximizing customer lifetime
value (CLV) and customer equity, which is the sum of the lifetime values of
the company’s customers. A frequently-encountered difficulty for companies
wishing to measure customer profitability is that management accounting
and reporting systems have tended to reflect product profitability rather than
customer profitability. But in spite of these difficulties, Companies looking
for methods to know how calculate their customers's CLV. In this paper, we
used K-Mean clustering approach to determine customers's CLV and
segment them based on recency, frequency and monetary (RFM) measures.
We also used Discriminant analysis to approve clustering results. Data
required applying this method gathered from one branch of an Iranian
private bank which is established newly. Finally, in terms of this
segmentation, we proposed customer retention strategies for treating with the
bank customers.
Keywords: Relationship marketing, customer lifetime value, RFM model,
clustering.
