Dr. V. Kumar was recently named as one of the finalist for the 2006 ISMS Practice Prize Award. Each year the INFORMS Society for Marketing Science holds a Practice Prize Competition which is awarded for an outstanding implementation of marketing science concepts and methods. The methodology used must be sound and appropriate to the problem and organization, and the work should have had significant, verifiable, and quantitative impact on the performance of the client firm.
Dr. Kumar was declared as a finalist for this award in recognition of the research study titled, “The Power of CLV: Managing Customer Lifetime Value at IBM” along with his colleagues – Rajkumar Venkatesan, University of Virginia; Tim Bohling and Denise Beckmann, IBM Corporation. This study described a carefully planned and implemented program within IBM to optimize the number of times the organization contacts its customers, incorporating innovations with respect to alignment with corporate objectives, forecasting cost to serve, imputing unobserved contribution margins, and allowing for inter-dependence of purchase incidence and quantity. As a result, IBM gained over 20 million dollars in value growth over a one year period due to the implementation of the recommendations from the modeling approach suggested here. Read more about this study here.