Originally Posted by
midway
Lufthansa calculates a lifetime customer equity value (CEV) for each M&M member based on past revenue (1/3) and future revenue (2/3).
I'd love to see the tool with which LH predicts future revenue for a single given customer.
Especially if that part makes up 2/3 of total equity value. This is like trying to predict the exact individual default time of a standard consumer / retail loan.
IMHO due to customer behavior that cannot be much more than a look into the crystal ball .. oops, excuse me, of course LH will call it like "Single integrity revenue prediction excellence system" being based upon "the most advanced statistical techniques available today, crafted by our best employees" and using "state of the art structural equation modelling techniques".
Originally Posted by
midway
They rank each of the 10 million members based on their CEV, therefore each member has a rank between 1 and 10 million. Afterwards they put the members in 6 customer equity classes based on their customer equity rank.
My theory is:
If you are in a certain class (maybe the 2nd) you get your "+" behind SEN.
I somehow doubt it. I'm still way too young as that my past revenue with LH could ever put me into one of the upper classes you mentioned.