September 2001
Intermediate to advanced
182 pages
4h 16m
English
Content preview from Mining Your Own Business in Telecoms Using DB2 Intelligent Miner for Data
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Chapter 6. How to discover the true value of your customers 111
The challenge of measuring the customer value is balancing all the aspects of
the customer and determining the best measurement from a marketing
perspective. The objective of constructing the customer value function is to
deliver a more realistic and marketing driven customer evaluation to the
company, and enabling the company to have a complete and balanced customer
evaluation, combining the different customer components together.
Customer value compared to life time value
Life time value (LTV) is a very common way to evaluate customers in many
industries. LTV has the concept of future customer cash flow and forecasts or
estimates the future cash flow. In the telecoms industr ...
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