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LTV model in consultant sector. Case study: mental health clinic

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Abstract:

Since the early 1980s, customer relationship management (CRM) has been important in the new competitive business environment. Today, due to development of competitive factors in the business, the enterprise's need to create and retain effective relations with customers has been highlighted more and more. With the aim of customer scoring applications, the most profitable customers can be identified. In this paper, we categorized customers by three types of values for the clinic by using logistic regression as a data-mining technique, and calculated the customer defection and future purchase probability in a mental health clinic of the university of Tehran. Model verification and validation (using lift chart) was done and customer segmentation and analysis presented with proper marketing strategies.

Keywords: Analytical CRM; Consultant sector; Data mining; Logistic regression; Validation; Verification

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/01449290500168087

Affiliations: 1: Industrial Engineering Department, K.N. Toosi University of Technology, Tehran, Iran 2: Industrial Engineering Department, Faculty of Graduate Studies, Islamic Azad University, Tehran South Branch, Tehran, Iran

Publication date: September 1, 2006

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