Quantzig Helps a Leading E-commerce Retailer Boost Customer Lifetime Value by 30%

Aug 16, 2017

Customers of today are less loyal to a particular brand and are looking for products that provide quality and durability in the longer run. From the retailers’ perspective, it is the contrary, as retailers always want to acquire the right customers and improve customer retention. The retail landscape is more challenging than ever, where retailers are looking to drive more revenue from their existing database so that they can attract more customers to their brands. The sophisticated marketers of today understand the need for retaining customers and are highly relying on predictive analytics to help them develop effective marketing plans. Predictive analytics helps businesses predict the behavior of their customers, understand what kind of products will become successful, and plan strategies to attract the customers. By leveraging the use of big data in predictive analytics, businesses can plan their inventory, replenishment management, and minimize risk and uncertainty.

Quantzig’s predictive analytics solutions help the client target each individual and evaluate their purchases in real-time. It further helps the client accurately predict the buying patterns of the customers based on their buying habits. Moreover, using predictive analytics allows retailers to set prices and compare pricing with that of competitors.

Leveraging dynamic micro-segmentation and predictive modeling techniques can help you predict the lifetime value of a customer based on their purchase history, demographics, and other behavioral traits. Get in touch for more insights.

The Business Challenge

A leading e-commerce driven brand focusing on delivering a fun approach to style always recognized the importance of customer lifetime value. In the initial days, the company witnessed exponential growth with customers’ base pacing at a significant rate. As time passed, the company started facing challenges in assessing the customer lifetime value and wanted to emphasize on improving the engagement and retention of their existing customers. The primary objective of the study was to measure the health of its customer base on a regular basis.

Our Approach

To target the right audience and make robust connections with them, the client approached Quantzig’s customer lifetime value assessment team. Quantzig’s team of experts carried out extensive research and developed a robust statistical model to analyze the lifetime value of customers across different marketing channels. The model assisted the client to identify the type of acquisition channels that attract the most valuable customers and enhance their acquisition strategy accordingly. The team of experts also identified their top customers as early as their first purchase.

A robust customer lifetime value model helps you focus on retaining potential customers who can bring in more revenue in the future. Request a free proposal to better understand our core capabilities.

Quantzig's customer lifetime value

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Predictive Analytics Solution Benefits

  • Identify the top customer and their future top customers
  • Provide additional service to top customers to assess incremental value and repeat purchase rate
  • Increase the predicted lifetime value of new customers by 30%
  • Gain insights on which channels are the source for high-quality customers
  • Devise effective strategies to allocate resources accordingly

Benefits of Quantzig’s Integrated Approach

In a span of four weeks, Quantzig’s customer lifetime value assessment helped the client identify channels to improve the quality of customers. The engagement further assisted the client to understand the challenges of not having access to real-time insights to make agile and informed decisions.

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