Evaluation on customer lifetime value of mobile communication enterprise based on analytic hierarchy process

Customer value evaluation can help enterprises identify the most profitable customers and execute strategies for improving customer profitability and the efficiency of marketing campaigns. An analytic hierarchy process approach is described and applied to customer lifetime value evaluation of mobile communication enterprises. Results of the AHP show that the customer lifetime values in average exist a distinct difference among three main mobile carriers in China's mobile market. China Mobile Company's customer lifetime value in average is over the "very promising" grade, and China Unicorn Company's customer lifetime value in average is near the "very promising" grade, and China Netcom Company's customer lifetime value in average is lower than the "promising" grade. Subsequently, the customers are segmented into platinum customers, golden customers, iron customers and lead customers based on their lifetime value, and some differentiation-marketing strategies are put forward to promote customer profitability.