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Reducing adverse selection through customer relationship management
Adverse selection is an important problem for marketers, especially those selling risk products (e.g., loans, insurance, and other financial services). Prospects who are likely to respond to an offer are usually less desirable. To reduce the likelihood of acquiring an unprofitable customer, companies often engage in costly screening processes. Customer relationship management (CRM) presents a solution to the twin problems of adverse selection and costly screening. In this article, using data from a company's CRM system, the authors present a modeling framework to identify those customers who will both respond to an offer and be approved for the product. The authors estimate the model using a sample of the customer database. These results are then used to identify prospects among remaining customers that will receive the offer. An empirical study using data from a national financial firm shows that the simultaneous method that the authors describe increases the number of customer approvals and reduces the number of applicants who may defect after being turned down..Printed Journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | : American Marketing Association |
|---|---|
| Edisi | - |
| Subjek | Marketing Models Financial Services Customer relationship management Adverse selection studies Customer information files |
| ISBN/ISSN | 222429 |
| Klasifikasi | - |
| Deskripsi Fisik | - |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |