Spatial Model of Customer Lifetime Value

Developing a Spatial model of Customer Lifetime Value (CLV) by using Geographical Information Systems (GIS) is a new approach in the area of business management. Fundamentally, CLV functionally for estimating the profitability of the business, as indicates of how long the business can survive in the geographical marketplaces. The grassroots issues of CLV related model and approach, as referred by the four major approaches of CLV, there are limited work and knowledge on how to measure CLV based on spatial point of view. The aim of this project is to develop a Spatial Model of Customer Lifetime Value (SCLV), using the hybrid approach of Geographical Information Systems (GIS) and survey, with aimed for enhance the capabilities of prospecting customers’ profitability for hypermarket businesses. The topmost CLV model as identified as Recency, Frequency and Monetary (RFM) model were transforming into the spatial based RFM, and then the spatial visualization of spatial RFM will be based on geographical marketplace as identified as Seberang Perai Tengah of Penang. This study contributes on the new method and theory on how to improve the accuracy of CLV specifically on free customer profitability. The Spatial Model of Customer Lifetime Value (SCLV) becomes a major method where its application will be spreads in many sector of industries. They are big potential for SCLV as commercials product by next development of SCLV apps version as possible to use by many type of business especially small and medium business.