Retirement Measurement When Estimating Customer Life Characteristics
Customer relationship populations exhibit divergent life characteristics across different industries, and retirement rate behavior influences customer life expectancy. Customer population life characteristics are measured through the study of historical customer retirement behavior and the application of statistical techniques to construct survivor curves that describe mortality patterns, which can be used to predict future retirement behavior of a customer population. The selection of the method for measurement of historical customer retirement activity has the potential for significant influence on customer population life characteristics.Abstract
Contributor Notes
Richard K. Ellsworth is with Deloitte Financial Advisory Services LLP. He is an Accredited Senior Appraiser (ASA) in business valuation as well as a licensed Professional Engineer (PE) and a Chartered Financial Analyst (CFA). The views expressed in this article are those of the author and do not necessarily represent the views of Deloitte Financial Advisory Services LLP.