Integrated customer lifetime value models to support marketing decisions in the complementary and alternative medicine industry

IF 4.5 Q1 MANAGEMENT Benchmarking-An International Journal Pub Date : 2023-06-27 DOI:10.1108/bij-07-2021-0431
Kessara Kanchanapoom, Jongsawas Chongwatpol
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Abstract

PurposeCustomer lifetime value (CLV) is one of the key indicators to measure the success or health of an organization. How can an organization assess the organization's customers' lifetime value (LTV) and offer relevant strategies to retain prospective and profitable customers? This study offers an integrated view of different methods for calculating CLVs for both loyalty members and non-membership customers.Design/methodology/approachThis study outlines eleven methods for calculating CLV considering (1) the deterministic aspect of NPV (Net present value) models in both finite and infinite timespans, (2) the geometric pattern and (3) the probabilistic aspect of parameter estimates through simulation modeling along with (4) the migration models for including “the probability that customers will return in the future” as a key input for CLV calculation.FindingsThe CLV models are validated in the context of complementary and alternative medicine (CAM)in the healthcare industry. The results show that understanding CLV can help the organization develop strategies to retain valuable customers while maintaining profit margins.Originality/valueThe integrated CLV models provide an overview of the mathematical estimation of LTVs depending on the nature of the customers and the business circumstances and can be applied to other business settings.
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整合客户生命周期价值模型,支持补充和替代医疗行业的营销决策
客户生命周期价值(CLV)是衡量组织成功或健康的关键指标之一。组织如何评估组织客户的终身价值(LTV),并提供相关的策略来保留潜在的和有利可图的客户?本研究提供了一个综合的观点,计算不同的方法为忠诚会员和非会员客户的clv。本研究概述了计算CLV的11种方法,考虑到(1)有限和无限时间范围内NPV(净现值)模型的确定性方面,(2)几何模式和(3)通过模拟建模进行参数估计的概率方面,以及(4)将“客户将在未来返回的概率”作为CLV计算的关键输入的迁移模型。研究结果CLV模型在医疗保健行业的补充和替代医学(CAM)的背景下得到验证。结果表明,了解CLV可以帮助组织制定战略,以保留有价值的客户,同时保持利润率。原创性/价值集成的CLV模型根据客户的性质和业务环境提供了对ltv的数学估计的概述,并且可以应用于其他业务设置。
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来源期刊
CiteScore
10.40
自引率
16.10%
发文量
154
期刊介绍: Benchmarking is big news for companies committed to total quality programmes. Its enthusiastic reception by many prominent business figures has created high levels of interest in a technique which promises big rewards for co-operating partners. Yet, like total quality itself, it must be understood in its proper context, and implemented single mindedly if it is to be effective - this journal helps companies to decide if benchmarking is right for them, and shows them how to go about it successfully.
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