Models Used for Measuring Customer Engagement

The purpose of the paper is to define and measure the customer engagement as a forming element of the relationship marketing theory. In the first part of the paper, the authors review the marketing literature regarding the concept of customer engagement and summarize the main models for measuring it. One probability model (Pareto/NBD model) and one parametric model (RFM model) specific for the customer acquisition phase are theoretically detailed. The second part of the paper is an application of the RFM model; the authors demonstrate that there is no statistical significant variation within the clusters formed on two different data sets (training and test set) if the cluster centroids of the training set are used as initial cluster centroids for the second test set.
JEL Classification M31, C12, C14, C38
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© 2013 The Author. Published by Sprint Investify. ISSN 2359-7712. This article is licensed under a Creative Commons Attribution 4.0 International License. Creative Commons License
Corresponding Author
Mihai Tichindelean, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, Romania
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Lucian Blaga University of Sibiu