Customer Lifetime Value Modeling
We identify and capture market data to calculate your customers' financial contribution over the life of the buying relationship. Our analysis helps you understand customer value aggregated at the customer base, segment or sub-segment level. In addition to identifying value creation opportunities or value destruction issues, we enhance your customer relationship management initiatives.
Case Study - Financial Services Corporation
Our objective was to analyze the lifetime economic value of the client's customer relationships. First, we identified weak points in their forecasting methods. Next, we utilized our broad knowledge of financial services accounting treatments, financial modeling approaches and statistical data to construct a custom lifetime value model with a comprehensive set of causal factors.
This custom financial model provided significant insights into the economics of their customer portfolio. The client now better predicts revenue streams and costs associated with serving specific customer segments and—before experiencing any decline in profits—can preemptively attack impediments to performance.