An application of data mining techniques in assessment of Customer Lifetime Value

In late of 1980 , when - customer , oriented - enterprises worked in competitive markets , a new paradigm entered in customer relationship management (CRM) scope that was called customer lifetime value (CLV). CLVis the present value of all future profits for firms generated from a customer . CLV can be measured in different ways. According to recent researches, most of the proposesed models are mathematical models, but some tools like data mining can also be used to estimate CLV by analyzing customer information and transaction warehouses.

Keywords:

Customer lifetime Value , Customer Segmentation , weighted RFM model , data mining