Customer Lifetime Value in Insurance - sasCommunity.org

Good afternoon ladies and gentlemen. I hope you have had a good lunch andyou are not too tiered now to follow my presentation.As you can see from the conference programme, I`m going to be talkingabout the Customer Lifetime Value and it`s determination.My name is Monika Seyerle and after studying business administration at theuniversity of Nürtingen in Germany, I`ve done my final thesis in corporationwith SAS Institute Germany in Heidelberg.Beside my theoretical studies, the aim was also to determine the CLV forspecific insurance customers by using the SAS Software Enterprise Minerand the SAS OROS Software.I`d like to start by looking at the theoretical determination of the CLV. Then I`llmove on to show how you can integrate activity-based costing in the CLVconcept.At the end I`m going to show you an example how the CLV can bedetermined for the customers of an insurance company using the SASSoftware.If there are any questions, I would be glad to answer them after mypresentation.1) First of all, I`d like to have a look at the Business strategies of a company.Several years ago, companies tried to acquire or to retain as many customersas possible.Nowadays they often take another point of view: not the quantity of customersis the important thing, but the quality of each customer, meaning howprofitable each customer is.The strategies to acquire and to retain as many customers as possible, don`ttake into consideration that the less profitable customers are likely to beretained as well.