A retention strategy based on an enlightened lapse model is a powerful profitability lever for life insurer. Some machine learning models are excellent at predicting lapse, but from the insurer’s perspective, which policyholder likely to not enough design strategy. In our paper, we define management framework with appropriate validation metric Customer Lifetime Value and profitability. We inclu...

This paper presents an empirical examination of the relationship between brand equity and customer acquisition, retention, and profit margin, the key components of customer lifetime value (CLV), as well as the role of marketing in this relationship. We examine a unique database from the U.S. automobile market, comprised of 10 years of survey-based brand equity measures as well as acquisition ra...

The move towards a customer-centred approach to marketing, coupled with the increasing availability of customer transaction data, has led to an interest in understanding and estimating customer lifetime value (CLV). Several authors point out that, when evaluating customer profitability, profitable customers are rare compared to the unprofitable ones. In spite of this, most authors fail to recog...

CRM is about introducing the right product to the right customer at the right time through the right channel to satisfy the customer’s evolving demands. Ideally, it should follow the development of each individual customer and develop integrated multi-segment, multi-stage, and multi-channel CRM decisions in order to maximize the total customer lifetime profit. However, most existing CRM practic...

C management activities at firms involve making consistent decisions over time, about: (a) which customers to select for targeting, (b) determining the level of resources to be allocated to the selected customers, and (c) selecting customers to be nurtured to increase future profitability. Measurement of customer profitability and a deep understanding of the link between firm actions and custom...