Customer lifetime value model based on customer satisfaction

This paper first introduces a basic CLV model of individual customers, and then uses the degree of customer activity links word of mouth and customer satisfaction, finally import word of mouth and customer satisfaction into the model to construct a new CLV model. When identifying customers` value, enterprises can simply and practically use this new CLV model, and conveniently make the most valuable customers as right object to maintain, and promote the successful implementation of customer retention strategy.