STM Journals Peer-reviewed research from Consortium e-Learning Network

Journal of Production Research & Management

A New Model for Calculating Customer Lifetime Value on Monetary, Interpurchase Time and Retention

  1. Hui-Hsin Huang

Abstract

Customer lifetime value(CLV) is an important an index to help company measure its customer value and allocate its marketing resource efficiency. CLV model bases on economic concept to calculate customer value with their purchase behavior.This paper construct a new model for calculating customer lifetime value on monetary, interpurchase time and retention. The empirical data of a credit card company is used to estimate parameters and compare the predicting results with other CLV models. The results can make application for different industries for customer value management.

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