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Essay / 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 exploration of data. Ever-changing customer behavior explains unpredictable customer profitability, which in turn leads to 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 assets and are increasingly devising ways and methods to estimate customer lifetime value, which have been developed as a very important strategic marketing tool. The CLV model has also been described in other management literature such as "customer equity" and "customer profitability", which help businesses and corporations quantify customer relationships. Essentially, “customer profitability provides a measure for the allocation of 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. customer behavior. These changes have dramatically changed customer behavior and made the current CLV model, which predicts customer purchasing behaviors based on their past spending habits or demographics, inadequate. Therefore, in order to effectively apply the CLV model to an open and complicated market...... middle of 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. “Managing Customer Profitability in a Competitive Marketplace 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 -data mining/