A three-dimensional customer classification model based on knowledge discovery and empirical study

Abstract

It is important for stockjobbers to carry out customer segmentation and find out the high-valued customers. This article focuses on the main factors that act on customer lifecycle value (CLV) and customer potential contribution value (CPV). At the basis of analyzing some key factors which the stockjobbers largely depend on from the classical CLV model, a three-dimensional customer classification and CPV estimate model is put forward. This model is convinced of feasible and reasonable by an empirical study with factual data from one stockjobber. It solves out the problem of looking for quantitative approach to estimating customer's level of CPV. © Springer-Verlag Berlin Heidelberg 2007.