CLV Prediction Model for Supply Side in Marketplaces and Online Platforms

The concept of customer lifetime value has beenaround for quite some time and differentapproaches and models have been generated forthe application of CLV in several environments.CLV ensures that the customers who can createthe most value and profit for the firm can beidentified and then based on these data, the firmcan provide plans to foster long-term relationshipswith the preferred customers.The world of business has been the subject ofsome drastic changes as of late. New kinds ofbusinesses have begun to show up around theworld which are called “platforms”. Unlike oldschool businesses which tried to create and deliverthe value to customers all by themselves,platforms use a different strategy. They facilitatethe exchange of value between the supplier sideand the demand side, both of which could beconsidered the customers of the platform owner.As such, CLV can be defined for either of thesides. But since the inception of the onlineplatforms, the supply side has been ignored.In this study, we provide a framework to helpplatforms predict and calculate the amount ofCLV for each of their suppliers, which can helpthem identify which of their supplier they shouldfocus on in the long run. We then apply thisframework in real world to see their merits, andthe results will show that the proposed frame workhas an acceptable output considering thelimitations of the data. We then provide somesuggestions for future research to improve uponour model.

کلیدواژه ها:

CLV ، Modeling ، Supply Side ، Platform ، Marketplace