IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v33y1987i1p1-24.html
   My bibliography  Save this article

Counting Your Customers: Who-Are They and What Will They Do Next?

Author

Listed:
  • David C. Schmittlein

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

  • Donald G. Morrison

    (Graduate School of Business, Columbia University, New York, New York 10027)

  • Richard Colombo

    (Department of Marketing, Tisch Hall, New York University, New York, New York 10002)

Abstract

This article is concerned with counting and identifying those customers who are still active. The issue is important in at least three settings: monitoring the size and growth rate of a firm's ongoing customer base, evaluating a new product's success based on the pattern of trial and repeat purchases, and targeting a subgroup of customers for advertising and promotions. We develop a model based on the number and timing of the customers' previous transactions. This approach allows computation of the probability that any particular customer is still active. Several numerical examples are used to illustrate applications of the model.

Suggested Citation

  • David C. Schmittlein & Donald G. Morrison & Richard Colombo, 1987. "Counting Your Customers: Who-Are They and What Will They Do Next?," Management Science, INFORMS, vol. 33(1), pages 1-24, January.
  • Handle: RePEc:inm:ormnsc:v:33:y:1987:i:1:p:1-24
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.33.1.1
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:33:y:1987:i:1:p:1-24. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.