Risk-based approaches also work well in managing customers through other aspects of their life cycles. In addition to their natural inclinations, customers develop varied characteristics and buying patterns over time. Some are overly demanding, while others always lose the invoice. Some pay promptly, while others are notoriously lax. A few might even be litigious.
Monitor these characteristics in your short- and long-term customers. Build them into your risk-based pricing. Do you have customers who return routinely or who have contracts or products with long lives? Service contracts, supply contracts, credit, and even repeat purchase relationships can fall into this category.
When managing customers over time, there are ...