DOI: 10.5176/978-981-08-6308-1_41
Authors: Jiann-Horng Lin, Hui-Ling Hung
Abstract:
Relationship marketing assumes that firms can be more profitable if they identify the most profitable customers and invest disproportionate marketing resources in them. Customer Lifetime Value is one of the key metrics in marketing and is considered an important segmentation base. In this paper, we use the system dynamic model as a policy laboratory to test a lot of policies and evolve the appropriate strategy. According to the simulation of the model, we have to improve the three key parameters, included Repeat Purchase Rate, Communication Rate and Marketing Costs in order to increase the revenue.
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