Predicting Customer Potential Value: an application in the insurance industry

  • 1 January 2001
    • preprint
    • Published in RePEc
Abstract
For effective Customer Relationship Management (CRM), it is essential to have information on the potential value of customers. Based on the interplay between potential value and realized value, managers can devise customer specific strategies. In this article we introduce a model for predicting the potential value of a current customer. Furthermore, we discuss and apply different modeling strategies for predicting this potential value.
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