A MODEL TO DETERMINE CUSTOMER LIFETIME VALUE (CLV) IN BANKING INDUSTRY

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

SOHRABI BABAK; KHANLARI AMIR; AJORLOO NASIBEH

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: Management Research in Iran Year:2011 | Volume:15 | Issue:1 (70) Page(s): 223-239

Download Full-Text

Persian Verion

View:

3,116

Download:

Cites:

Information Journal Paper

Title

A MODEL TO DETERMINE CUSTOMER LIFETIME VALUE (CLV) IN BANKING INDUSTRY

Author(s)

SOHRABI BABAK | KHANLARI AMIR | AJORLOO NASIBEH | Issue Writer Certificate

Keywords

CUSTOMER LIFETIME VALUEQ2

BANKINGQ1

CUSTOMER RELATIONSHIP MANAGEMENTQ2

CLUSTERING OF CUSTOMERSQ2

AHP APPROACHQ2

WRFM MODELQ2

Abstract

Financial Service Providers (FSPs) like other organizations can use CUSTOMER LIFETIME VALUE (CLV) as an instrument to achieve their targets in CUSTOMER RELATIONSHIP MANAGEMENT (CRM). Although various studies have been done about this concept, CLV case studies are scarce in BANKING industry. In this research, in order to present a model to determine CLV in BANKING industry, customers with current account in a bank in Iran were studied. Determining the relative importance of R, F and M variables that are used to cluster customers, ranking the clusters of customers according to their CLV and understanding the best strategies for bank to treat with each cluster are among the other goals of this study. Three main variables were used to apply the model; a) Recency: the length of time since the last transaction (in days), b) Frequency: number of positive transactions and c) Monetary: balance of account (in Rials). Also wR, wF and wM were used as the relative importance of R, F and M variables. We used the ideas of experts and marketing managers and the data of transactions from the random samples of 382 corporate customers and 5113 individual customers, who had current account in 33 branches of a bank in Tehran. The analytical Hierarchy Process (AHP) was applied to determine wR, wF and wM in evaluating CLV.Then WRFM MODEL was used to cluster the customers and rank them based on their CLV for two groups of corporate and individual clients Clustering and Discriminant Analysis techniques were implemented for this section.Finally, the best strategies for bank to treat with each cluster of the customers was determined.

Cites

No record.

References

No record.

Cite

APA: Copy

SOHRABI, BABAK, KHANLARI, AMIR, & AJORLOO, NASIBEH. (2011). A MODEL TO DETERMINE CUSTOMER LIFETIME VALUE (CLV) IN BANKING INDUSTRY. MANAGEMENT RESEARCH IN IRAN (MODARES HUMAN SCIENCES), 15(1 (70)), 223-239. SID. https://sid.ir/paper/375776/en

Vancouver: Copy

SOHRABI BABAK, KHANLARI AMIR, AJORLOO NASIBEH. A MODEL TO DETERMINE CUSTOMER LIFETIME VALUE (CLV) IN BANKING INDUSTRY. MANAGEMENT RESEARCH IN IRAN (MODARES HUMAN SCIENCES)[Internet]. 2011;15(1 (70)):223-239. Available from: https://sid.ir/paper/375776/en

IEEE: Copy

BABAK SOHRABI, AMIR KHANLARI, and NASIBEH AJORLOO, “A MODEL TO DETERMINE CUSTOMER LIFETIME VALUE (CLV) IN BANKING INDUSTRY,” MANAGEMENT RESEARCH IN IRAN (MODARES HUMAN SCIENCES), vol. 15, no. 1 (70), pp. 223–239, 2011, [Online]. Available: https://sid.ir/paper/375776/en

Related Journal Papers