Customer revenue is only half of the story, understanding the cost of service to your customer is key to understanding how profitable your customers actually are and help you drive your business to increased profitability.
Predict the total cost of your service to a customer to better manage profitability.
The total cost of each customer.
This requires merging almost all data within the company to get a full view of everything that is involved in supporting the customer. This starts with the CRM to understand the cost of the sale, but includes all shipments and the related costs to those shipments, product usage data to understand the costs to provide the services to the customer. Records of additional costs incurred from this customer may be found in the Finance database and support costs can be estimated from support tickets. All this data needs to be cleaned, joined and transformed into valuable ML features before going into model training. This pre-modeling prep process can be frustrating and time consuming. We are here to help.
Build machine learning models to predict the total cost of the customer as a function of the independent variables. Use model interpretability packages to evaluate the impact of the independent variables on the prediction.