Modeling Customer Lifetime Value Using Survival Analysis - An Application in the Telecommunications Industry


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Source: SAS Institute
Date: January 2008
Type: White Paper
Rating: (2)

Overview: This white paper presents an application to model customer lifetime value, the net present?s value of customers calculated profit over a certain number of months, using survival analysis techniques. Customer lifetime value is a powerful and straightforward measure that synthesizes customer profitability and churns risk at individual customer level. For existing customers, customer lifetime value helps companies develop customer loyalty and treatment strategies to maximize customer value. For newly acquired customers, customer lifetime value helps companies develop strategies to grow the right customers.

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