Title: Customer lifetime value under complex contract structures
Authors : Heitz, Christoph
Ruckstuhl, Andreas
Dettling, Marcel
Published in : Exploring services science : first international conference, IESS 2010, Geneva, Switzerland, february 17-19, 2010 - revised papers
Pages : 276
Pages to: 281
Conference details: First international conference, IESS 2010, Geneva, Switzerland, February 17-19, 2010
Editors of the parent work: Morin, Jean-Henry
Ralyté, Jolita
Snene, Mehdi
Publisher / Ed. Institution : Springer
Publisher / Ed. Institution: Berlin
Issue Date: 2010
License (according to publishing contract) : Licence according to publishing contract
Series : Lecture Notes in Business Information Processing
Series volume: 53
Type of review: Not specified
Language : English
Subjects : Customer lifetime value; Marketing; Markov chain models; Semi-Markov models
Subject (DDC) : 658.8: Marketing management
Abstract: We analyze the problem of calculating the customer lifetime value (CLV) under contract structures that have an impact on customer dynamics. Typical examples are minimum contract durations, or fixed time points for contract cancellation. We show that classical Markov Chain models are not appropriate and may lead to large errors in the CLV. We propose a Semi-Markov formulation which leads to substantially better results.
Departement: School of Engineering
Organisational Unit: Institute of Data Analysis and Process Design (IDP)
Publication type: Conference Paper
DOI : 10.1007/978-3-642-14319-9_24
ISBN: 978-3-642-14318-2
ISSN: 1865-1348
URI: https://digitalcollection.zhaw.ch/handle/11475/4402
Appears in Collections:Publikationen School of Engineering

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