Customer Lifetime Value Prediction Helps an IT Services Company Serve their Customers Better

Nov 8, 2018

Importance of Customer Lifetime Value Model

Do you know who your best customers are? Are you proficient to retain those customers and make them loyal? Well, customer lifetime value model helps develop optimal approaches for customer engagement, increase understanding of the potential value of a consumer, and empowers the workforce to enhance customer relationships proactively. The customer lifetime value model estimates all the future profits a given consumer will generate in total for a company. The importance of customer lifetime value model lies in determining how much can be reasonably spent to procure or retain a consumer and on which groups of customers you should focus the most to maximize profits.

Advantages of Customer Lifetime Value Analysis

  • Helps in better customer profiling and segmentation to offer customized services and to target customers based on value potential.
  • Helps to manage the best investment in assets, workforce and inventory based on future demands.
  • Improves operational efficiency and reduce customer dissatisfaction.
  • Customer lifetime value model can go a long way in predicting churn and enable the design of new programs to reduce attrition.

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Global IT Services Industry Overview 

The information technology has been one of the chief driving forces fuelling the world’s economic growth. In an age of constant technological disruption, for global IT services company, growing fast has become crucial for survival. The United States has the most advanced information technology services enterprise in the world. The IT services industry operate a mature, harmonized market and have a reputation for producing solid solutions that accelerate quickly to the marketplace. The global IT industry’s scope covers product support services such as hardware and software support and professional services such as IT consulting, development, and integration services.

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Client Profile 

The client is a leading IT services company headquartered in California. The client’s top-notch services are supported by a strong team of 2000+ highly skilled professionals to produce innovative, secure and scalable IT solutions.


The “lifetime” of a customer varies for distinct businesses. The Client, who is a major player in the IT service industry wanted to focus on the long-term profits instead of procuring cheap customers. With Quantzig’s customer lifetime value model, the client needed to index the best channels of marketing, that are bringing best value customers. Moreover, the IT service company needed to allocate the right budgets for different types of customers in the value chain with customer lifetime value model.

Solutions Delivered 

With the aid of Quantzig’s customer lifetime value model, the client was able to define customer-specific communication approach with better segmentation of customers. The identification of low and mid-level customers and customer lifetime value assisted the client to define better marketing strategies, which turned the consumers into long-term loyal ones. Moreover, the client was able to predict the profit they might generate from their customers and was able to get a clear picture on the amount to be spent on acquiring, retaining and serving those customers.

Why Quantzig?

Quantzig , with over 15 years of expertise has supported the clients across the globe with end-to-end data modeling capabilities to leverage analytics for sound decision making. We believe that the strength to tackle the actionable data is what drives a company towards success.

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