Applying Customer Lifetime Value Analysis in Taiwan Liner Industry

This research described in this paper investigated the customer lifetime value (CLV) of a Taiwanese Liner shipping carrier. According to the concept of CLV, all shippers were divided into three groups by cluster analysis and labeled as high CLV group, medium CLV group and low CLV group. Research results confirmed the phenomenon in other industries that most of the profits are derived from a small group of customers. Therefore, business has to focus on its target market and allocate most marketing resources in this segment.