Modeling Lifetime Value in the Insurance Industry
نویسنده
چکیده
Acquisition modeling for direct mail insurance has the unique challenge of targeting responsive customers while minimizing risk. In addition, factors such as the probability of a paid premium and customer profitability all effect the Lifetime Value of a prospect. This presentation will detail the steps to develop a Lifetime Value, which can used to optimize the selection of prospects. Topics covered include how to structure and prepare data for analysis to model construction and validation. Additional directions for overlaying a risk segmentation model and product profitability are described. A final discussion will cover criteria for final name selection based on company objectives.
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