A Prospectus for the Application of the Customer Lifetime Value Framework for Customer Relationship Management within Blockchain Settings
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Customer Relationship Management
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In recent years, there has been a rapid surge of growth in interest surrounding blockchain technologies through their implementations in cryptocurrencies, non-fungible tokens, and myriad other applications. Despite the tremendous increase of users and investors engaging with blockchains, there has not been a corresponding increase in the amount of research dedicated to advancing Customer Relationship Management (“CRM”) across the blockchain industry. Consequently, this paper aims to provide a prospectus for a potential cohorted analysis of blockchain userbases using a probabilistic Customer Lifetime Value (“CLV”) framework to generate managerial insights useful in CRM or forecasting the growth trajectory of a blockchain. The prospectus utilizes Bitcoin as an example subject for analysis and suggests utilizing a combination of the Python and R programming languages to fit the Pareto/NBD to model repeat purchasing behavior and the Gamma-Gamma to model customer spend.