The customer lifetime value prediction in mobile telecommunications

Abstract

How to treat the customer relationship is a crucial problem in the telecommunications industry. Therefore, how to measure and manage customer lifetime value (CLV) for determining the likely future profit from the customer is very important because the customer is always looking for better and cheaper products and services. The CLV value not only combines with the churn management but also considers the cross-selling and up-selling to allure customer. Earning, not just buying, customers’ loyalty is now mandatory. Analysis and prediction of customer lifetime value (CLV) methods by using Artificial neural network (ANN) is proposed here. In this paper Multi-Layer Perceptron (MLP) network with Levenberg-Marquardt algorithm is used to predict the CLV, the strategic and operational decisions to retain a customer Lifetime Value in the Mobile Telecommunications industry.