Building More Profitable Home Insurance with Customer Value
Customer lifetime value measures customers over time. Working with overwhelming amounts of data can distort the analysis.
Many insurers have led with auto coverage, then cross-sold homeowners. But strategies are changing.
The key is to begin with useful data, then build out.
One test of a company's ability to generate better levels of customer lifetime value is how well they identify specific needs and move to fill them.
Some customers may be profitable in the short term but less valuable over time.
