Analyzing customer lifetime analyses and an application in corrugated cardboard industry

Corrugated cardboard, which has been in the life of people since 1856, has become a very important one in our daily life with the globalization and environmental sensitivity. Today, corrugated cardboard has become one of the inputs of almost all industrial and commercial companies. Forming the customer portfolios is very important for the producers who want to respond to the diversity of corrugated cardboard needs in the most optimum way. Whether by their own production capabilities or by better understanding the market conditions through customer segmentation, working with the right customer group is vital for companies to make the most efficient use of their resources. When creating the right customer group, it would be useful to create a customer group that is both current and future with customer lifetime value, rather than just making decisions based on past experience. In this study, 222 customers of a corrugated cardboard factory in Turkey were classified into four groups as low-performing, selling a relationship, networking relationship and high performing by customer profitability & relationship levels which analyzed with Net Promoter Score. Customer Lifetime Value to every customer 5 years analyzed. Finally, sales effort spent to each customer was calculated and it is revealed how the sales team can contribute to the company with increasing effectiveness.