Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program

calculating the CLV of different customer segments helps orient your marketing strategy.

Because motivating and retaining its most valuable casino customers is a key driver of profits, Harrah’s has refined its customer relationship management process, a core business process.

CRM applications, for example, can point to segmentation and propensity scores.

Having such information is especially valuable for companies with millions of customers. It enables application of marketing concepts such as customer lifetime value analysis, needs-based segmentation, and collaborative filtering.