Customer segmentation model based on value generation for marketing strategies formulation

Álvaro Julio Cuadros () and Victoria Eugenia Domínguez

Estudios Gerenciales, 2014

Abstract: When deciding in which segment to invest or how to distribute the marketing budget, managers generally take risks in making decisions without considering the real impact every client or segment has over orga- nizational profits. In this paper, a segmentation framework is proposed that considers, firstly, the calcu- lation of customer lifetime value, the current value, and client loyalty, and then the building of client seg- ments by self-organized maps. The effectiveness of the proposed method is demonstrated with an empir- ical study in a cane sugar mill where a total of 9 segments of interest were identified for decision making.

Keywords: Segmentation; Customer value; Artificial neural network; Self-organized maps (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000129:011444

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