Patent ID: 7340408
Filing Date: 2008-03-04
Classification: G06Q

Abstract:
1. A method for evaluating customer value to guide loyalty and retention programs comprising: generating, by a processing system, a hazard function model based on attributes relating to a plurality of current customer accounts; generating, by the processing system, a hazard function for a first existing customer, to determine probability of churn, based on the hazard function model and account data associated with the first existing customer and corresponding to the attributes; calculating a gain in lifetime value for the first existing customer based on a change in the hazard function resulting from a retention effort; and determining a focus for retention-based interactions with the first existing customer based on at least the hazard function, wherein determining the focus comprises clustering the hazard function for the first existing customer and hazard functions for a plurality of other existing customers so that the hazard functions are grouped together according to shape, each group representative of a customer set.