Rethinking Credit Scoring: Strategic Management in Customer Lifecycle Management

credit scoring
Introduction: Why classic credit scoring is no longer enough Credit scoring has been a central steering instrument in banks and financial services for decades. It determines credit approvals, pricing, and risk classes—efficient, standardized, and embedded in regulatory frameworks. But the market environment has changed. Digital touchpoints, increasing willingness to switch, and new competitors are shifting

The RFM model for calculating customer value and segmentation

Introduction The RFM model is a proven tool in customer relationship management (CRM) that helps companies determine the value of their customers and divide them into different segments. It is based on three key metrics: Recency: When did the customer last shop? Frequency: How often does the customer shop in a certain period of time?