Implementation of Marketing Strategies Based on Customer Lifetime and Referral Value (Case Study: Internet Service Industry)

Nowadays, due to the sharp increase in competition and expansion of competitive markets, customer lifetime value has become one of the main topics in customer relationship management. The models which have been used so far for the estimation of customer lifetime value and segmentation of customers do not include all aspects of customer value. The main purpose of this study is to assess the impact of customer’s value on other customers through estimation of customer referral value and then provide appropriate marketing strategies for each segment of customers based on their value in the broadband internet access services industry. Using the data obtained from a firm operating in the industry, it will be shown that the customers who have the largest transactions (i.e. those who have the highest lifetime value) are not necessarily the best marketers. The statistical population of this study included all customers of a telecommunication firm in Tehran and all members of the population were selected as the sample. The required data were obtained from reports of the customer database of the studied firm using MySQL, PHPMyAdmin, and Tableau. All data were statistically analyzed in IBM SPSS Statistics 22. Using the results of this study, it will be shown that a better understanding of customer value allows firms to target their marketing campaigns more properly and gain higher profits from their marketing investments.