Application and Model of Customer Segmentation Oriented Customer Equity

Without considering the contribution of all the indirect influences,customer segmentation models proposed before which incorporated the current and potential profitable contribution as the only metrics may underestimate the true value of the individual customer to the enterprise.With the expectation of providing some appropriate guidance to the relevant customer management strategies, the customer segmentation model oriented customer equity is proposed,which involves three customer contribution dimensions:customer current value contribution,customer potential value contribution and customer potential mediate.The model is applied into a credit card setting of a bank to prove its feasibility and availability.