Abstract
Maximizing the customer's lifetime value(LTV) through continuous relationship with customers guarantees a company's long-term profits. The factors that decide LTV are profit which is from customer' spending, cost which is spent by the company, remaining possibility considering the attrition rate, market yield to calculate the present value of the LTV, and finally considering period for the LTV. Thus, to maximize customer's LTV, a company should raise the profit from customer, cut the cost, and at the same time, minimize the attrition rate. In 90's, database marketing has been given a attention as a new marketing paradigm, and it was taken for granted that it is useful tool for building, developing, and sustaining successful relationship with customers.
The purpose of this thesis is to find the useful way of utilizing database marketing to maximize LTV of customer in the cable TV home shopping industry which has rapidly grown recently. It is worth while to analyze cable TV home shopping industry since it utilize almost all the new media for marketing such as TV, Direct Mail, Tele Marketing, Newspaper, and Internet. Thus, by the systematic analyse on the industry, the benefit of database marketing for maximizing the LTV will be tested and the direction for database marketing will be suggested by studying concrete strategies.
Key words
Lifetime Value, LTV, Database marketing, Cable TV, Home shopping industry, Portfolio of customer, RFM, FRAT
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