Should the tiering be based upon current or future customer value?

How should services vary across tiers?

How can customer expectations be managed to reduce resentment of lower tier

customers?

What rules should be applied to migrate customers up and down the hierarchy?
Market segmentation

Sales forecasting

Activity-based costing

Customer Lifetime Value Estimation

Data Mining
https://www.youtube.com/watch?v=K8Hte8KXuf4

https://www.youtube.com/watch?v=sbboWo-w0ZM
Overall, ABC serves CPM in a number of ways:

1. When combined with revenue figures, ABC tells you the absolute and relative
levels of profit generated by each customer, segment, or cohort.

2. Establish whether customization and forms of value creation for customer pays
off.

3. Prioritize and direct customer acquisition, retention, and development strategies.

How can we segment the market to identify potential markets?

How can we cluster our current customers?

Which customers offer the greatest potential for the future?

Directed:

The focus is to look for target variables and associated predictor variables
Model is built.

Predictive performance of the model is examined.

Runs on historical data and then on contemporary data (scoring).

ANN helps the betterment of the predictive performance of the model.

Undirected:

Does not aim to develop a model that predicts a target variable.

Looks for hidden structures, patterns, or relationships in datasets.