CUSTOMER CROSS-SELLING MODEL BASED ON CUSTOMER MATURITY AND PRODUCT GRADE

摘要

We often observe consumers sequentially purchasing multiple products and services from the same provider. These sequential purchases can stretch over an extended period of time and are naturally ordered with regard to complexity and functionality. Accordingly, this commonly observed situation offers huge opportunities for companies carrying multiple products and services to “cross-sell” other products and services to their existing customer group. In this paper, we propose a cross-selling model, which can predict customers’ purchase decisions among all of the available products and services, based on the Counter Propagation Network (CPN). We investigate the sequential acquisition pattern and bring forward special definitions of customer maturity and product grade, based on our own research. Also, we provide a new method to calculate the value of customer maturity and product grade. Using data from one Chinese bank, we demonstrate how the model can predict the purchasing inclinations of current or potential customers.