Customer lifetime value analysis

In the increasingly fierce competition market, corporate product quality has been difficult to retain customers, which became significant to win in the business competition. Companies need to use information technology such as customer tracking, management and services in order to retain old customers and attract new customers. It has become a fundamental rule of business survival to provide personalized series service. In order to give the finite enterprises resources to its full play, we need to allocation the resources to create more customer value. Corporation is needed to take different marketing tools to different customers, configurate the different resources, among which customer value assessment is important. Based on this opinion, Customer lifetime value model is used to consider the customer value and improve the accuracy of customer value prediction. What's more, it can make business resources allocation more efficient and give more emphasis to high-value customer service as a result of enhancing the company's profitability and competitive advantage. This paper makes a definition of customer value and the customer lifetime model. In the paper considering the recommended effect to the customer lifetime value model so that can improve the accuracy of model prediction and the enterprise is of great practical significance.