Customer Potential
When we speak of Customer Potential Value or, more briefly, Customer Potential, we are referring to a complex KPI (Key Performance Indicator) which is of fundamental importance as a support for a company’s marketing strategies. In very simple terms, it is the potential that a specific customer has to generate profit for the company, as a net value of his risk value (probability of producing costs/losses in terms of each relationship between the company and the same client).
We made mention of the fact that the Customer Potential is a complex KPI: indeed, this indicator is the result of a combination of several basic indicators. The basic indicators are obtained via the implementation of more than one statistical models: Propensity Model, Churn Prevention Model, Credit Risk Model, etc.. This modular approach allows us to achieve higher accuracy and a more effective control on the calculated indicator.
While the single statistical models allow us to create tactical indicators, that is, focused on single products/events, the derivation of more complex KPIs, like Customer Potential Value, allows the company to avail itself of strategic-type tools, which are of fundamental importance to plan for orienting, for example, commercial planning and customer care strategies. In short, Client Potential is a fundamental driver for a system that identifies the client as the cornerstone of the company’s strategic plan.