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