Saharon Rosset
ABSTRACT
We present and discuss the important business problem of estimating the effect of retention efforts 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 then describe how we build on this approach to estimate the effects of retention on Lifetime Value. Our solution has been successfully implemented in Amdocs' Business Insight (BI) platform, and we illustrate its usefulness in real-world scenarios.
- Cox, D.R. (1972), "Regression Models and Life Tables," Journal of the Royal Statistical Society, B34, 187--220.Google Scholar
- Friedman, J.H. (1997), "On Bias, Variance, 0/1-Loss and the Curse-of-Dimensionality", Data Mining and Knowledge Discovery 1(1), 55--77. Google ScholarDigital Library
- Helsen, K. and Schmittlein, D.C. (1993), "Analyzing Duration Times in Marketing: Evidence for the Effectiveness of Hazard Rate Models," Marketing Science, 11, 395--414.Google ScholarDigital Library
- Inger, A., Vatnik, N., Rosset, S. and Neumann, E. (2000), "KDD-Cup 2000 Question 1 Winner's Report," SIGKDD Explorations, 2(2), 94. Google ScholarDigital Library
- Kaplan, E.L. and Meier, R. (1958), "Non-parametric Estimation from Incomplete Observations," Journal of the American Statistical Association, 53, 457--481.Google ScholarCross Ref
- Mani, D.R., Drew, J., Betz, A. and Datta, P. (1999), "Statistics and Data Mining Techniques for Lifetime Value Modeling," Proceedings of KDD-99, 94--103. Google ScholarDigital Library
- Murad, U. and Pinkas, G. (1999), "Unsupervised Profiling for Identifying Superimposed Fraud," PKDD-99, 251--261. Google ScholarDigital Library
- Neumann, E., Vatnik, N., Rosset, S., Duenias, M., Sassoon, I. and Inger, A. (2000), "KDD-Cup 2000 Question 5 Winner's Report," SIGKDD Explorations, 2(2), 98. Google ScholarDigital Library
- Novo, J. (2001), "Maximizing Marketing ROI with Customer Behavior Analysis," http://www.drilling-down.com.Google Scholar
- Rosset, S. and Inger, A. (2000), "KDD-Cup 99: Knowledge Discovery In a Charitable Organization's Donor Database," SIGKDD Explorations, 1(2), 85--90. Google ScholarDigital Library
- Rosset, S., Murad, U., Neumann, E., Idan, I. and Pinkas, G.(1999), "Discovery of Fraud Rules for Telecommunications - Challenges and Solutions," Proceedings of KDD-99, 409--413. Google ScholarDigital Library
- Rosset, S., Neumann, E., Eick, U., Vatnik, N. and Idan, I. (2001), "Evaluation of prediction models for marketing campaigns," Proceedings of KDD-2001, 456--461. Google ScholarDigital Library
- Venables, W.N. and Ripley, B.D. (1999), Modern Applied Statistics with S-PLUS, 3rd edition. Springer-Verlag.Google Scholar
Index Terms
- Customer lifetime value modeling and its use for customer retention planning
Recommendations
Customer Lifetime Value Models for Decision Support
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 ...
Customer Lifetime Value Measurement
The measurement of customer lifetime value is important because it is used as a metric in evaluating decisions in the context of customer relationship management. For a firm, it is important to form some expectations as to the lifetime value of each ...
Modeling Customer Lifetime Value in Buyer-Seller Relationships
ICIII '09: Proceedings of the 2009 International Conference on Information Management, Innovation Management and Industrial Engineering - Volume 01Estimating customer lifetime value is becoming increasingly important in order to identify and invest on prospective profitable customers. This paper reviews three research streams in this field: models for calculation of CLV; models of customer base ...
Comments