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B2B customer defection models

Michael Lowenstein EXPERT RESPONSE FROM: Michael Lowenstein

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QUESTION POSED ON: 09 October 2006
Do you find that models that predict customer deflection are not as accurate for a B2B situation? It seems that B2B customers would have a multitude of relationship factors that would be difficult, if not impossible, to build into a model.

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EXPERT RESPONSE
Though B2B customer deflection models may be somewhat more challenging, because of the greater likelihood to have missing or incomplete 'firmographic' variables, several consulting and database management companies have succeeded in creating them. The guideline in developing and using B2B models, just like B2C models, is that if a variable can be managed, then it can be measured, and quantified into a model. And, though the model may not have optimal accuracy, it will still represent a decision-making guide and support.


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