Measurement and Promotion of Customer Equity of Enterprise under Contractual Relationship:Application in Insurance Industry

The different characteristics of customer behaviors between contractual relationship period and the end of contractual relationship determine that we must measure customer lifetime value from two aspects:customer current value and potential value.Customer current value can be measured with historical data.The difficulty of customer potential value measurement is the measurement of customer retention rate.Through the identification of influencing factors of customer retention rate,we can use logit regression to calculate the retention rate of any customer,thus realize the customer equity measurement of enterprise under contractual relationship.The application results of insurance industry show that this measurement method has strong operability and high accuracy.On this basis,take customer current value and potential value for subdivision dimensions to do customer segmentation and according to the customer segmentation results we can put forward the corresponding customer equity promotion strategy.