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ts interact with each other to drive the value proposition of the customer. The components align business operations with the value proposition and create specific action plans to help realize the customer value over a lifetime.

CVM components can be further broken down in to a structured process as shown in Figure 8. This is done to deliver the specified objective of implementing a customer value management strategy for a life insurance company (insurer)

The phases explained in Figure 8 are summarized in the below section.

Analysis
The Analysis Phase consists of analyzing data and formulating strategies using data mining techniques to improve the customer profitability. The key processes which are included in this phase are:

Data Quality and Single Customer View[11]: To improve profitability from the customers, analysis of the customer data stored in various systems is performed. Thus life insurance companies need to integrate them to understand the customer trends and purchase patterns.

Life-time Value Model: Once the data is integrated, it is used to calculate the life time value of existing customers using various available methods. Discounted Cash Flows (DCF) method is one such model.

Key Drivers: Key value drivers for a life insurer are determined by analyzing the data from the single customer view and the life time value model. Identifying key drivers that affect the purchasing decisions of a customer and the method by which an organization delivers on those drivers forms an important part of the Analysis Phase.

Segmentation: Based on the customer values generated by lifetime value model, the customer segments are segregated into current and future low to high value customers. Further these customers are also segmented based on demographics, customer behavior etc. to capitalize on the current and future trends in the life insurance industry

Planning
The Planning phase ensures that the information collected after analyzing the data is valid and relevant for improving the customer value. Strategies at product and market level are formulated and implemented in planning phase. The tasks associated with planning phase are:

· Planning at the Business and Product/Market Level: Campaign planning based on customer segment is associated with planning at product and market level to implement the overall strategy of the organization. Campaign planning may include marketing plans, product development, cross-selling or up-selling of products to existing customers. After the completion of campaign planning, campaigns actions are implemented with intend to improve the customer profitability. [12]

· Key performance indicators: Based on the overall strategy, key performance indicators are identified based on financials, marketing performance, customer satisfaction, customer retention. These indicators allow insurers to measure the outcome of various actions on a periodic basis.

Continuous Improvement
Continuous improvement phase includes updating of action plans and strategies to make it more efficient and effective to achieve the organizational objectives. Objectives of continuous improvement are achieved by:

Continuous performance measurement: The performance indicators established in the planning phase should be reviewed on a periodic basis to avo