Traditionally, marketers have focused on the acquisition of new customers through mass advertising and price-oriented promotions, accepting as a fact of life that newly acquired customers would eventually switch to competitors. Today, the focus has changed from customer acquisition to customer development and retention, particularly for the firm’s best customers. This shift from customer acquisition to development and retention requires a new mindset from product-centric to customer-centric management and raises new questions. For instance, what is the maximum amount a firm should spend to acquire a customer? Should firms want to keep their customers forever? What can be learned from customer defection?
New forms of information technology provide increasingly rich data of individual-level customer behavior to address these issues but few firms have the expertise to intelligently act on such information. This course will provide students with the analytical tools that are necessary for understanding and predicting customer behavior and assessing customer lifetime value. The course will be grounded in relevant academic work as well as cases and exercises covering a broad set of industries and applications.
You will develop a deep understanding of customer centricity and its implications for the firm, learn about state-of-the-art methods for calculating customer lifetime value and customer equity, and develop the analytical and empirical skills that are needed to judge the appropriateness, performance, and value of different statistical techniques that can be used to address a issues around customer acquisition, development, and retention
Instructor Biography– Yanwen Wang
Course Outline – Class of 2018 (Updated January 31, 2018)
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