Method and system for assessing intrinsic customer value

摘要

A method and system for assessing the potential for change in the value of a customer introduces the notion of "intrinsic customer value" (ICV) of a customer or a particular group of customers sharing similar characteristics. The ICV can be used in conjunction with the customer's actual historic value to assess the potential for change and to assist in the development of appropriate customer management plans. In particular data mining techniques are used to analyze historic customer data to determine factors that influence the expected value of a customer. Based on these findings, customer segments with distinct characteristics and estimates of intrinsic value are identified. Knowing the ICV allows businesses to make more informed decisions about marketing strategies and tactical customer management plans, and better forecast their effects.