Customer segmentation model based on value generation for marketing strategies formulation

Alvaro Julio Cuadros · Victoria Eugenia Domínguez

35 citations0/0 files storedEstudios Gerenciales

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Customer churn and segmentation Customer Service Quality and Loyalty Consumer Market Behavior and Pricing

Abstract

Whendeciding in which segment to invest orhowto distribute the marketing budget, managers generallytake risks in making decisions without considering the real impact every client or segment has over organizationalprofits. In this paper, a segmentation framework is proposed that considers, firstly, the calculationof customer lifetime value, the current value, and client loyalty, and then the building of client segmentsby self-organized maps. The effectiveness of the proposed method is demonstrated with an empiricalstudy in a cane sugar mill where a total of 9 segments of interest were identified for decision making.

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References

2004A Customer Lifetime Value Framework for Customer Selection and Resource Allocation Strategy 2000Driving Customer Equity: How Customer Lifetime Value Is Reshaping Corporate Strategy 2001Diagnosing Customer Value: Integrating the Value Process and Relationship Marketing 2002Customer lifetime value research in marketing: A review and future directions 2001Driving Customer Equity, How Customer Lifetime Value is Reshaping Corporate Strategy 2011New insights into churn prediction in the telecommunication sector: A profit driven data mining approach 2003An LTV model and customer segmentation based on customer value: a case study on the wireless telecommunication industry 2007The effects of loyalty programs on customer lifetime duration and share of wallet

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2019A Novel Parallel Biclustering Approach and Its Application to Identify and Segment Highly Profitable Telecom Customers 2023Estimating travellers’ value when purchasing auxiliary services in the airline industry based on the RFM model 2015The effect of web interface features on consumer online purchase intentions

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