The evaluation of customer potential value based on prediction and cluster analysis

The previous method for customer potential value assessment is basically qualitative evaluation, rather than effective quantitative evaluation. This paper for the first time proposed the method of the calculation of wallet size and wallet share: on one hand, the corporate customer´s growth rate is obtained by the use of forecasting technology, after which the growth of customer wallet size can be estimated; on the other hand, customers with the same wallet size can be divided into different clusters by the use of clustering methods, and then the potential of each customer´s wallet share growth can be obtained by comparing with the objective customer in the same cluster. For the customer value-based customer management strategy development, this paper considers the influence of the customer strategy and proposed the concept of target customer value, which is the screened and adjusted result based on customer strategy; finally, based on the customer segmentation in terms of customer value, different customer management strategy is proposed for corresponding customers segments.