Research On Customer Value In Telecommunications Based On Customer Lifecycle

Based on the theory of customer lifecycle, the paper studies on the business of fixed line telephone and PHS in China Telecom, the lifetime value of family customer and the longtime value of government and enterprises are computed, and a series of strategies on customer relationship management are proposed. The main work and research are organized as follows:1. The research background of the paper is introduced systematically, customers are emphasized as the focus of the development of enterprises, some research literature on service quality, customer retention, customer value and customer lifecycle are reviewed briefly, and main content and structure are introduced.2. The relevant concepts and theories on customer lifecycle are introduced, the characteristics and management strategies in all the stages of the lifecycle about customer relationship are elaborated, and the main strategies of customer management in telecommunications operators are also proposed.3. The appraisal system on customer value is analyzed specifically, four different model of customer lifetime value are introduced and compared, a method which adopts customer lifecycle curve and weibull distribution is presented to compute the lifetime value of typical customer, and a method is presented to compute the longtime value of individual client by forecasting future expectations of transactions, and finally, the principle and strategies of customer value management are introduced briefly.4. Research on fixed line and PHS in a subsidiary of China Telecom, family customers and government/enterprises are differentiated, their lifetime value is computed using different models, customer segmenting is done by value, and the strategies on the development of new customer, the value enhancement of family customers and value chain integration of government/enterprises are concluded.5. The results of the research are summarized in the last part, including the status of development, characteristics, and suitable measures, and several future research direction are released for reference.