Customer Lifetime Value in Insurance - sasCommunity.org

To succed this aim, it is necessary to use a software like the SAS OROSSoftware. Without this software it is much more complicated and by using thesoftware you save a lot of time and money.Let`s have a look at the SAS OROS Software. We will regard the cost centerMarketing. I`ve created a model with the aim to allocate overhead costs, likethe total amount of salaries, to specific customers, according to whatprocesses or activities are necessary to care for a customer.First of all, the total amount of salaries for the employees, working in the costcenter Marketing, is allocated to certain special processes. These processesare activities in a cost center, like for example “sending out mailings” or“doing advertisement”.These activities in a cost center can be put together in a main process like “toattract new customers”. These main processes group together severalactivities from different cost centers.To simplify the concept, I have classified the customers into different groupsaccording to the time they are already in the company: there are newcustomers, developing customers and existing customers.- new customers are in the company for less than one year- developing customers are from one to three years and existingcustomers for longer than three years with the company.According to this, the costs of the main processes can be allocated tocustomer categories. For each customer category you will then find differentcosts.A new customer is in general more expensive than a longtime existingcustomer.