How to really quantify the economic value of customer information in corporate databases

This paper introduces a novel model (VICRM) to assess the economic value of customer information in CRM systems, particularly within B2C environments. The model expands upon traditional Customer Lifetime Value (CLV) models by incorporating customer engagement value (CEV), customer knowledge value (CKV), and customer social value (CSV). An empirical case study in the Spanish insurance sector demonstrates the model's ability to provide significantly different results compared to traditional CLV models, offering new customer segmentations and value estimations while mitigating the high dependence on retention rates seen in traditional approaches. The research aims to provide businesses with an effective way to quantify the economic value of their customer information.

Carlos Lamela-Orcasitas, Jesús García-Madariaga