An Analysis of Customer Value Based on Customer Life Cycle

The evaluation of customer value is an important job of Customer Relationship Management(CRM).This paper presents a model of customer value based on customer life cycle based on in existence research.This model describes three primary aspects of customer value,namely customer profit,dynamic customer retention rate and length of customer life cycle.It analyzes the changing tendency of customer profit and the changing instance of four factors affecting customer profit(bargaining quantity、 price、cost and indirect income)in life cycle phases,and discusses that Weibull life distribute model is used to confirm customer retention rate.