Predicting Customer Potential Value: An Application in the Insurance Industry

43 Pages Posted: 26 Aug 2006

See all articles by Peter C. Verhoef

Peter C. Verhoef

University of Groningen - Department of Marketing & Marketing Research

Bas Donkers

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM); Tinbergen Institute

Date Written: October 2001 1,

Abstract

For effective Customer Relationship Management (CRM), it is essential to have information on the potential value of customers. Based on the interplay between potential value and realized value, managers can devise customer specific strategies. In this article we introduce a model for predicting the potential value of a current customer. Furthermore, we discuss and apply different modeling strategies for predicting this potential value.

Keywords: customer relationship management, customer potential, marketing models, insurance industry

JEL Classification: M, M31, C44

Suggested Citation

Verhoef, Peter C. and Donkers, Bas, Predicting Customer Potential Value: An Application in the Insurance Industry (October 2001 1,). ERIM Report Series Reference No. ERS-2001-01-MKT. Available at SSRN: https://ssrn.com/abstract=370861

Peter C. Verhoef (Contact Author)

University of Groningen - Department of Marketing & Marketing Research ( email )

Netherlands

Bas Donkers

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
Rotterdam, NL 3000 DR
Netherlands
+31 10 408 2411 (Phone)
+31 10 408 9169 (Fax)

HOME PAGE: http://people.few.eur.nl/donkers/

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 2411 (Phone)
+31 10 408 9169 (Fax)

HOME PAGE: http://people.few.eur.nl/donkers/

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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