Dynamic Impact Factors of Customer Lifetime Value: An Empirical Study of M-Zone

Abstract

With the development of mobile business, Mobile users become the core customers to mobile telecom operators. M-zone is the most potential customers to China Mobile, the biggest mobile operator in China. And the foremost task for China Mobile is how to improve and maintain M-zone CLV (Customer lifetime value). This paper aims to find which dynamic impact factors have significant affect to M-zone CLV. Firstly, 19 factors are summarized and classified into four categories. Secondly, 11 factors are chosen to check the significant effect to M-zone CLV. And then a questionnaire is done on the Internet, with 160 participants. The ANOVA analysis result shows that grade, gender, expenditure, number of friends, and duration have significant affect to M-zone CLV. The correlations analysis indicates income, expenditure and number of friends are positive to M-zone CLV, while grade is negative; the higher expenditure is, the higher churn intention will be.