English, Article, Journal or magazine article edition: Benefits of Quantile Regression for the Analysis of Customer Lifetime Value in a Contractual Setting: An Application in Financial Services D. F. BENOIT; D. VAN DEN POEL

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/15368
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Benefits of Quantile Regression for the Analysis of Customer Lifetime Value in a Contractual Setting: An Application in Financial Services
Author
  • D. F. BENOIT
  • D. VAN DEN POEL
Physical Description
  • preprint
Notes
  • The move towards a customer-centred approach to marketing, coupled with the increasing availability of customer transaction data, has led to an interest in understanding and estimating customer lifetime value (CLV). Several authors point out that, when evaluating customer profitability, profitable customers are rare compared to the unprofitable ones. In spite of this, most authors fail to recognize the implications of these skewed distributions on the performance of models they use. In this study, we propose analyzing CLV by means of Quantile Regression. In a financial services application, we show that this technique provides management more in-depth insights into the effects of the covariates that are missed with Linear Regression. Moreover, we show that in the common situation where interest is in a top-customer segment, Quantile Regression outperforms Linear Regression. The method also has the ability of constructing prediction intervals. Combining the CLV point estimate with the prediction intervals leads to a new segmentation scheme that is the first to account for uncertainty in the predictions. This segmentation is ideally suited for managing the portfolio of customers.
  • customer relationship management (CRM), database marketing, customer segmentation, quantile regression, prediction interval, customer lifetime value
  • RePEc:rug:rugwps:09/​551
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment