Modeling customer potential value in China’s commercial banking industry

Modeling customer potential value in China’s commercial banking industry

  This paper studies customer potential value in the context of China’s commercial banking industry. More specifically, we model customer transaction data to find customers with high potential value. We contribute to the existing literature: (1) by placing our research emphasis on customer potential value, a topic that scholars who study CLV tended to ignore; (2) by modeling customer potential value in the background of China’s commercial banking industry, which is a beneficial attempt in bank marketing research. Our findings suggest that commercial banks can estimate whether a customer has high potential value through applying constructed models, thereby delivering corresponding services to stimulate more customer value.