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Santander and Customer Lifetime Value

Santander Bank has a different product for customers who have a better contribution to the profit of the bank and are considered the best customers. The product is called Select and there are some minimum requirements to be a Santander Select customer. This product is normally attributed to customers who are professionally well and have attained wealth after having worked for a considerably number of years. Thus, it is not common to see recent graduates who have just started their professional life as a Santander Select customer. However, Santander has been attributing the product Select to medical doctors that have just begun their activity, even though they do not meet the requirements to be a Santander Select customer. Santander predicts that young medical doctors will be profitable to the bank in the short term, since it is expected that medical doctors will earn more money as they improve their professional skills. This is called customer lifetime value, which is a prediction of the net profit attributed to the entire future relationship with a customer. By treating the young medical doctors as good clients, it is also a way to retain them and to keep them loyal to Santander for a longer period.

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