Modelling Customers Lifetime Value For Non-Contractual Business

Abstract

Because customer equity is becoming increasingly important in today's business environment, many companies are focusing on customer loyalty and profitability as a way to grow market share. A company's successful Customer Relationship Management (CRM) begins with identifying true value and customer loyalty, as customer value can provide basic information that can be used to spread more targeted and personalized marketing. Customer lifetime value (CLV) is used in this document to segment consumers in non-contracted companies. The findings of this research are very promising. CLV has successfully analyzed and produced a fairly strong assumption about the value possessed by each customer whether they will make a return transaction or not.