There is an old saying that “beauty is in the eye of the beholder”. The principle is that we all look at beauty in different ways, aligned with our personal paradigms and values.
This same principle is also applicable to the insurance world where it can be said that “customer value is in the eye of the beholder”. If asked which type of customer is the most valuable to an organisation, you will get very different answers from the broker and internal sales staff, the underwriting department and the marketing department. This is due to the way each of these functional areas view the value as it affects their own disciplines.
So, what is the best way of determining customer value? The answer is to include a combination of all these diverse measures as a means to obtain the true customer lifetime value. Our most recent website article provides guidance on how to arrive at a meaningful metric. The article is available by clicking here.