Focusing on high value clients
What is customer classification?
Retaining the right customers is paramount to ensure profitability and high customer lifetime value. Predicting a customer’s value enables a company to focus its retention efforts on the right clients and improve products, services, and customer experience.
3 facts about the model
Customer classification as a standard model is a fast track to AI model implementation.
The model uses customer and purchase data to predict those that are the most valuable.
The model enables you to focus on customers with a high lifetime value.
We offer customer classification through a supervised algorithm. The model is trained on a data set, describing the customers and the services they bought, together with a label (supervised) that classifies the case as a high-value customer or not. The model stores the profiles associated with high value and the descriptive variables most likely to classify the cases.
The business outcome
Using the Grace Standard Model for customer classification, the company gets an overview of valuable vs. nonvaluable customers. Now, the company can direct its retention efforts to the customers with the highest value. The company can also use these insights to improve the customer experience.
Interested in taking AI into production?
If you think this model would be relevant for your organization go-ahead and book a demo! We would love to help you get started. Otherwise, you can download our Grace Enterprise AI Platform brochure for more information.