Organizations collect various forms of customer data at different phases of customer interactions. This wealth of organizational data provides an opportunity to predict customer behavior based on statistical analysis and other quantitative methods. Part of understanding customers is knowing not only the actual revenue and profitability at an individual customer level, but also the potential value of each customer throughout the life of their relationship with the organization. Forecasted lifetime value varies from customer to customer based on factors such as life stage, demographics, depth and breadth of the current business relationship, and historical transaction patterns.
This predictive information is a key ingredient of making the right offer at the right time to each customer. The objective is to predict customer behavior in a given situation, based on the customer’s known attributes and past behavior.
Idiavate helps its clients build models that accurately forecast each customer’s lifetime value to the firm by identifying the determinants of customer lifetime value (CLV) that apply to your business. CLV models are used to score customers in real time at the point of an inbound interaction, such as a website session or call, so that the latest CLV information helps drive how you respond to each customer. It’s important to realize that our clients do not need to build a department of statistics experts to do predictive modeling; Idiavate framework of predictive analytics implement industry standard tools and COTS software that that make such complex analyses available to the non-expert marketing user. Please call @ (331) 305-4342 to learn more.