Customer Risk Modeling refers to the building of an an analytic model which assigns a risk index or risk profile to each customer, as per the business risk factors. Risk related events or behaviours such as account default, contract cancellation, low service usage or high claim ratio can all negatively impact the organisation. Armed with a unique, holistic risk profile of a customer, businesses are better positioned to develop and implement strategies to mitigate the potential risks they face in dealing with customers.
"They [Lightstone] bring a new dimension to understanding how your customers behave.
Having them onboard with strategic planning is an enlightening experience"
- Francois Viljoen GM: Dealer Development and Training
Customer Risk Modeling Process
Lightstone offers a unique approach to the analysis process for building customer risk models in that we prefer to review the customer as a holistic entity, reviewing customer behaviour in the wider consumer and commercial context, as opposed to only focusing on the data specific to business issue, product or company in question. This involves integrating client's customer data into Lightstone's proprietary framework which allows additional data variables, not necessarily known to the client, to be included and examined.
By statistically defining risk profiles and adding a logical geographic dimension, Lightstone is able to identify the root cause drivers of business risk. Sharing these insights with clients enables them to develop and implement the appropriate strategies to mitigate these risks.
Contact us for more information and pricing of Customer Risk Modeling.