| value-churn index (CRM-ANA) |
Incorporates into a single index the value of a customer for a company and the likelihood of that customer churning.
The value-churn index is calculated as follows:
Value-churn index = likelihood to churn * customer value index
The higher the value-churn index, the more valuable the customer is to the company or the higher that customer's likelihood to churn.
In the analytical application Churn Management, the value-churn index is calculated using the data mining method Scoring.