Customer Lifetime Value in Insurance - sasCommunity.org

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After having found these impacts, the SAS Enterprise Miner automaticallycalculates a modelled value, based on this historical data and impacts, for thefollowing year for each customer.18) All the different models for the six target variables were combined in anoverlapping model, where the present value of a customer was calculatedand the future value was predicted.Having found two values for each customer, the present and future value, I`vecreated a portfolio with these two dimensions. All the customers with theirdifferent values could be inserted in the portfolio.Dividing the customers into different segments, according to their present andfuture value, you will notice that in this example there are many customerswith middle present, but also with middle future values.Let`s consider a specific segment. For example this one, where the customerpossesses a low present and a high future value.19) Looking at this segment, you will find out different characteristics of thesecustomers. There are especially male persons between 30 and 40 years inthis segment with low present and high future value.20) According to these characteristics you can derive suitable actions fortreating customers differently.For example currently profitable customers with high future potential shouldbe tried to retain with more effort.Offering them special Cross- and Up-selling offers and involving them intospecial customer care actions can enhance their satisfaction and lengthentheir relationship to a company.
21) Let me summarise briefly what I`ve said by considering the whole CLV-Management, which consists of different steps:- First, you have to determine the specific components, which areimportant for a company to determine the CLV- Next, the present value and the future potential of each customer isdetermined by using the SAS Software OROS and Enterprise Miner- Consequently, the customers can be classified into different segmentsaccording to their present and future value- After that, different marketing-, sales-, and service-actions can bederived for each customer segment- At last, it is important to discover the characteristics of your highlyprofitable customers. As you know this target profile, it can be used toacquire more likely valuable new customers.Thank you for your attention and if you have any further questions please feelfree to contact me per e-mail or ask me now.
Page 5: Definition Customer Lifetime ValueT
Page 8 and 9: Run of the CLVCLVValuePresent Value
Page 10: Present Value of an insurance custo
Page 14: Determination of the potentialsCanc
Page 18 and 19: Copyright © 2001 , SAS Institute I
Page 20 and 21: Combination of all componentswhich
Page 22 and 23: CLV based actionsFeedback-LoopHighP
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Page 26 and 27: But these less profitable customers
Page 28 and 29: The limited resources in a company
Page 30 and 31: But the determination of a customer
Page 32 and 33: To succed this aim, it is necessary
Page 34 and 35: products, for which he has to pay d

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