Topic > Customer Profitability Case Study - 2336

This research paper focuses on managing customer profitability in a competitive market by adapting dynamic and rapid competitive marketing strategies such as continuous data mining. Ever-changing customer behavior is responsible for unpredictable customer profitability, which in turn causes inefficient and ineffective marketing planning. The use of data mining techniques develops a Customer Profitability Management (CPM) system that can be used to achieve marketing objectives by allowing customers to migrate along predetermined and desirable paths. Therefore, the CPM system is set up to emphasize the continuous interaction between active and reactive monitoring procedures to identify changes in customer behavior. Companies continue to view customers as important resources and are increasingly devising ways and methods to estimate Customer Lifetime Value, which has been developed as a very important strategic marketing tool. The CLV model has also been described in other management literature as "customer equity" and "customer profitability" which helps businesses and corporations quantify customer relationships. In essence, “customer profitability provides a metric for allocating marketing resources to customers and market segments.” The complex interaction of the level of individual needs, marketing activity, brand perception, competitive environment and the influence of new technologies are the results of customer behavior. These have dramatically changed customer behavior and made the current CLV model, which predicts customer purchasing behaviors based on past spending patterns or demographic characteristics, inadequate. Therefore, in order to apply the CLV model effectively to a complicated open market... half of the paper... Customer Profitability Model: A Segment-Based Approach." Journal of Service Research 5 (2002): 69- 76.Mulhern, Francis J. “Customer Profitability Analysis: Measurement, Focus, and Research Directions.”Journal of Interactive Marketing 13 (1999): 25-40.Wang, Hsiao-Fan, and Wei-Kuo Hong customer profitability in a competitive market through continuous data mining" Industrial Marketing Management 35 (2006): 715-723. http://homepage.univie.ac.at/marcus.hudec/Lehre/WS%202006/Methoden% 20DA/Profitabe%20CRM%20with%20Data%20Mining.pdf http://maxwellsci.com/print/rjaset/v4 -5010-5015.pdf http://www.imanet.org/PDFs/Public/Research/SMA/ Customer%20Profitability%20Management%20%281%29.pdf “Data Mining.” Accessed May 19, 2014. http://www.laits.utexas.edu/~anorman/BUS.FOR/course.mat/Alex/http: //www.zentut.com/data-mining/advantages-and-disadvantages-del-data-mining/