You are in business to make money, and in order to optimize your company's return you need to be able to make decisions about who your best (and worst) customers are, how you identify them and what you should be doing to increase their value.

For instance, knowing the value of a customer allows you to reason about how much you should be spending to acquire them. Or maybe you want to know whether you should be spending more (or less) on loyalty programs. You could even identify who the highest value customers are so that you can target them and win them away from your competitors.

Many people are unaware of the modern techniques available for placing a reliable value on customers and activities. Examples of methods we use include:

• Decision Tree analysis
• Real Options analysis
• Monte Carlo modeling
• System Dynamics modeling