According to a recent customer loyalty survey, the IT services industry ranks the lowest in terms of loyalty with a high customer attrition rate. The IT services industry is highly competitive with several small and large scale players competing for customer’s attention. However, IT services providers face challenges in terms of product and service consistency, pricing strategies, and customer experience resulting in low customer loyalty. However, with growing competition in the market, organizations are increasingly investing in building a robust IT infrastructure which will not only drive sales but also improve the overall economic condition of the IT services industry. Despite these positive signs, there still exists a question mark in terms of customer loyalty for the IT services industry.
Get in touch with our experts to know more about advanced analytics.
Customer Churn Analysis for IT Services Industry
Organizations, irrespective of their size, must leverage customer churn analysis to improve customer satisfaction and enhance service quality as several industries have high customer acquisition costs. Customer churn studies help businesses in devising effective customer retention strategies that help in targeting niche customer segments. IT services industry can improve its attrition levels and overall ROI by predicting the customer churn patterns and developing effective marketing strategies. There is a direct relationship between customer loyalty and organizations profitability, i.e., more loyal customers lead to higher profits and vice versa.
Organizations can benefit by segmenting its customer base and leveraging this data to reduce customer churn, reap maximum benefits, and build a loyal base. Why should IT services industry opt for various customer analytics and market analytics solution, you ask? Here’s why –
- In industries where similar or substitute products and services are easily available and the costs of retaining existing consumers is relatively less, reducing customer churn results in higher profitability
- Customer segmentation allows businesses to target customer segments with the right product effectively and at the right price
- Companies can easily refine their product and service offerings to retain the existing customers and drive loyalty by leveraging big data analytics
Recently a leading company in the IT services industry approached Quantzig’s customer analytics team to improve their retention strategies and drive customer satisfaction. With the help of a blended approach, our expert analysts team helped them identify customer churn rates and devise effective marketing campaigns. The client gained real-time insights into customer behavior, usage pattern, service quality gaps, and pricing strategies. To know how we helped the IT service company to overcome this roadblock, read the full case study here.
To know more about building customer loyalty in the IT services Industry, request a free demo today!
Today, managers have access to a large stream of data, and decision-making on the basis of gut-feeling, the rule of thumb, and guesswork are largely eliminated with the advent of data analytics.
For more than 14 years, we have assisted our clients across the globe with end-to-end data management and analytics services to leverage their data for prudent decision making. Our firm has worked with 120+ clients, including 55+ Fortune 500 companies. At Quantzig, we firmly believe that the capabilities to harness maximum insights from the influx of continuous information around us is what will drive any organization’s competitive readiness and success. Our objective is to bring together the best combination of analysts and consultants to complement our clients with a shared need to discover and build those capabilities and drive continuous business excellence.