Creating successful transaction actions to retain customers for future re-purchasing is extremely important in fiercely competitive environments. Moreover, different market strategies should be practiced for customers with different lifetime values and loyalty ratings. This work proposes a method, which combines clustering analysis and multiple criteria decision-making approach to evaluate customer lifetime value ratings, and construct the classification rules for individual clusters in market segmentation. An empirical case involving a hardware retailer is illustrated to show the usefulness for evaluating customer lifetime value ratings.
Shih, Ya-Yueh; Liu, Duen-Ren; and Tzeng, Gwo-Hshiung, "Combining Clustering and MCDM Approach for Evaluating Customer Lifetime Value Ratings" (2002). ICEB 2002 Proceedings. 107.