Abstract
Customer lifetime value is a key concept in relationship marketing. This paper develops, synthesises and organises formulae for computing this lifetime value in a progressive manner and continues a research direction started some years ago. Calculations are organised using a double taxonomy: customer relationship behaviour models (retention and migration models) and algebraic and matrix computing methods. The formulae suggested allow for the explicit representation of recency-censored customer migration processes, the flexible integration of desynchronised financial flows and extend customer value optimisation procedures from the retention to the migration model.
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Calciu, M., Salerno, F. Customer value modelling: Synthesis and extension proposals. J Target Meas Anal Mark 11, 124–147 (2002). https://doi.org/10.1057/palgrave.jt.5740073
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DOI: https://doi.org/10.1057/palgrave.jt.5740073