Research On The Model Of LTV Of The PAS Customers In Telecommunication

Customer is the most important asset of the company and the focus of market competition. Customers' retention impacts the company's profits obviously. The average profit increase 25% or more if there are 5% increase in customer retention. The customers' retention becomes the key of a company's success . Traditional customer segmentation based on customer purchase behavior or characteristics of the statistical characteristics. Although the traditional customer segmentation is helpful to predict future customer behavior, but it's difficult to precision make resources input strategy and maintain strategy. Aim of Customer segmentation is to formulating specific for each category of users, effective customer retention strategies. The purpose of this paper is identifying characteristics of each type of customer LTV model based on customer segmentation.This paper introduces the latest model of customer segmentation and CLV at first, then get the clusters of Telecom PAS users according to the Clustering and Decision Trees and build dynamic LTV curve for each category of users. We analysis the development of relation between enterprise and customer in various stages of life cycle and propose customer strategy according to the model of LTV. Finally, point out the shortage of the current LTV model and the explore areas for improvement.