In recent years, marketing professionals, especially catalog circulation managers have been urged to measure and maximize the lifetime value of each and every customer. There’s good reason in doing so. Examples abound of companies that overspend to acquire or retain less profitable customers while skimping on more profitable ones.
While calculating current lifetime value and profitability are generally not difficult, predicting which customers are likely to become profitable and valuable in the future requires a more sophisticated approach. The result however, can yield very powerful intelligence for developing effective customer programs. Here are just a few of the benefits of lifetime value and profitability modeling:
- Provides key predictors that you can use today to determine future customer value and profitability
- Delivers a framework and rationale for different customer treatments and interactions
- Provides justification for customer acquisition spending
- Helps focus staff on financially important metrics
ModelMAX® is ASA’s powerful yet easy to use, predictive and descriptive modeling software that provides a fast and easy way to develop lifetime and profitability predictive models.
Highlights
- Determine which variables are predictive of lifetime value and profitability
- Analyze variables to understand which values are more predictive than others
- Score your customer database for value and profitability
- Tap into the power of neural networks to find hidden patterns
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