| Popis: |
Some customers might have negative behavior that harms a company’s benefit. In this study, we emphasize on incorporating negative behavior incurred by these customers into the calculation of customer lifetime value (CLV) when doing business with them. Data from a railway e-booking system was adopted for a case study. The invisible cost of cancellation was incorporated along with the revenue of ticket selling into the calculation of CLV. From the results, we conclude that our model has a good estimation about the customers’ real values and can cherry-pick out customers with higher values than the traditional CLV models. By cherry-picking customers, lower cancellation rate and higher customer satisfaction are expected. |
