Analyzing Customer Lifetime Value in Digital Banking: A PPF-AHP Based Criterion Prioritization Approach

Abstract

In the modern banking ecosystem, shaped by digital transformation and intense competition, focusing limited resources on high-value customers is a fundamental requirement for corporate sustainability. In this context, the concept of "Customer Lifetime Value" (CLV) serves as a strategic compass. However, the criteria determining a customer's value to a bank consist not only of financial ratios but also of difficult-to-measure, subjective elements such as risk perception, digital adaptation, and loyalty. The primary objective of this study is to prioritize six main criteria; Financial Capacity, Risk Profile, Spending Behaviours, Digital Integration, Loyalty, and Demographic Factors and their associated sub-criteria that shape credit card customer value in the banking sector using the Proportional Picture Fuzzy Analytic Hierarchy Process (PPF-AHP) method. Based on the insights of three senior industry experts, this model mathematically demonstrates which criteria are most decisive in customer valuation and which are of secondary importance. The research findings aim to provide bank managers with a scientifically grounded roadmap for budget planning, product development, and risk-based pricing strategies.

Keywords

• PPF-AHP
• Decision support systems
• Banking
• Criterion prioritization
• Customer lifetime value

Ethical Statement

Ethics committee approval was not required for this study because there was no study on animals or humans.

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