Optimal allocation of short-term marketing resources based on customer lifetime value

摘要: Objective In recent decades, considering that the costs of attracting new customers are constantly increasing, it is very important and sensitive for the profitability of organizations to pay attention to maintaining customers and increasing their loyalty. Therefore, organizations implement various programs to increase the longevity of their customers. On the other hand, not all customers have the same profitability for the organization, and the limited resources of the organization should be spent on valuable customers. The purpose of this research is to provide a mathematical model for the optimal selection of target customers for retention programs and also to select the cost for each customer.Methodology The present research was carried out in 3 main steps. In the first step, using data mining, the probability of customers turning away is obtained. In the second step, the customer's lifetime value is calculated, and in the last step, the proposed optimization model is solved. LP-Metric was used to solve the model, and it was solved in GAMS software. Real data from one of the country's insurance organizations was used to solve the proposed model.Findings A two-objective optimization model based on customer lifetime value has been presented. One of the objective functions is related to maximizing the customer lifetime value by implementing the retention program and the other objective is related to minimizing the costs of the program.  Conclusion By solving the proposed optimization model, a Pareto chart has been obtained that, considering the opinion of experts, every point on this chart can be an optimal answer for choosing the target customers of …