Use of customer value measures in the creation of distribution lists: application to the hospitality sector

• Main Authors: Pedro Cascada, Célia Ramos, Carlos Sousa
• Format: Article
• Language: English
• Published: Universidade do Algarve 2014-05-01
• Series: Dos Algarves: A Multidisciplinary e-Journal
• Subjects: CLV; CSV; database marketing; RFM; segmentation; target lists
• Online Access: http://www.dosalgarves.com/revistas/N23/3rev23.pdf

Nowadays, the globalization, business competitiveness, the development of information and communication technologies and the modifications in the profile of consumers, more demanding, better informed and with new/different needs, put business face to new challenges. In this environment, the loyalty of its customers plays an important role, being relevant to know them in depth, maintaining long-term relationships, adjusting the proposed solutions products/services and equating the forms and timing to present them, in order to increase the value of their customer base. The aim of this article is to describe the development of an application that enables organizations to have an integrated view of the value of their customers. An analysis was performed to the customer’s database of the organization, according to the RFM (Recency, Frequency and Monetary) method and CLV (Customer Lifetime Value) computation. Based on its results a dashboard has been developed that allows obtaining summaries of the most relevant information and the possibility of extracting data for further use in target lists in the development of marketing campaigns.