| EPSRC Reference: |
GR/R80179/01 |
| Title: |
Customer value management and customer lifetime value |
| Principal Investigator: |
Thomas, Professor L |
| Other Investigators: |
|
| Researcher Co-Investigators: |
|
| Project Partners: |
|
| Department: |
Southampton Management School |
| Organisation: |
University of Southampton |
| Scheme: |
Standard Research (Pre-FEC) |
| Starts: |
01 September 2002 |
Ends: |
31 August 2004 |
Value (£): |
82,274
|
| EPSRC Research Topic Classifications: |
| Mathematical Aspects of OR |
Statistics & Appl. Probability |
|
| EPSRC Industrial Sector Classifications: |
| Financial Services |
Retail |
|
| Related Grants: |
|
| Panel History: |
|
|
Summary on Grant Application Form |
|
The advent of data warehouses in large financial organisations has made it possible to be much more discriminating in the operation of customers' accounts and the marketing of the products to them. Much of this discrimination is based on statiscal and operational research models of customerbehaviour that have emanated from the credit scoring and the marketing areas. However it is recognised that decisions about the customer cannot be taken in isolation from one another and all contribute to the profitability of the customer to the organisation. Hence the need to develop a customer value (or customer relationship) management paradigm. To develop useful holistic models of customer lifetime value one needs to incorporate the dynamics of customer behaviour and two approaches that have this potential are Markov chain customer behaviour models and ones based on survival analysis ideas. At present, neither approach models the impact of economic variables and market conditions on the customer's value.This proposal seeks to introduce these facets into these approaches by using the techniques that have proved so successful in modelling the impact of economic conditions on corporate credit risk. This will allow the development of customer value models that can deal with changes in economic and market conditions. The models will be developed using data from one of the largest insurance companies and the models will be used as a basis for specific customer value management decisions.
|
|
Key Findings |
|
This information can now be found on Gateway to Research (GtR) http://gtr.rcuk.ac.uk
|
|
Potential use in non-academic contexts |
|
This information can now be found on Gateway to Research (GtR) http://gtr.rcuk.ac.uk
|
|
Impacts |
|
| Description |
This information can now be found on Gateway to Research (GtR) http://gtr.rcuk.ac.uk |
| Summary |
|
| Date Materialised |
|
|
|
|
Sectors submitted by the Researcher |
|
This information can now be found on Gateway to Research (GtR) http://gtr.rcuk.ac.uk
|
| Project URL: |
|
| Further Information: |
|
| Organisation Website: |
http://www.soton.ac.uk |