customer churn reduction Archives | Quantzig

Tag: customer churn reduction

customer lifetime value

3 Interesting Tips to Increase Your Customer Lifetime Value

Companies across industries invest a lot of time and resources in tracking the journey of their customer, improving customer service, and providing the best customer experience. However, most companies tend to struggle when it comes to customer journey tracking and measuring business performance in real-time. This is where the focus must be shifted to gauging customer lifetime value as this can help organizations to evaluate the future value, they can generate from their marketing initiatives. Also, it can help in designing an efficient marketing strategy with more concise budget planning. Measuring customer lifetime value is important for businesses to retain customers and gain long-term profits. In this article, we have listed a few important tips that can help companies to increase their customer lifetime value and understand how well are they resonating with their audience. Additionally, these tips can aid companies to reverse-engineer the experience of existing customers and reduce customer churn.

Request a free brochure of our analytics solutions to learn how we can help you devise cost-efficient strategies aimed at improving the share of wallet and customer lifetime value.

CUSTOMER LIFETIME VALUE BLOG

Tips to Increase Customer Lifetime Value

Improve the onboarding process

To ensure sustainable business growth and increase customer lifetime value, companies should focus more on the onboarding processes as poor onboarding can be one of the major causes of churn. Onboarding is the point where any customer engages with a brand and where a brand can make the greatest positive impact. The process of onboarding can vary from industry to industry. However, there are a few interesting tips that can help businesses to engage their audience better. Businesses must make onboarding, an easy and fast process which can be done by simplifying the process with walkthrough guides, interactive how-to videos, wrapped tutorials and other content that might help customers in fulfilling their goals. Also, organizations should focus on communicating the value of their offering right from the start ensuring that communication is straightforward and is contributing to increase in customer lifetime value.

Wonder how to increase customer lifetime value, proactively boost engagement, increase acquisition rates, improve conversion and raise average order value? Talk to our analytics experts now!

Offer top notch customer service

Today customers are digitally empowered, and they expect better customer service at each of the touchpoints. Quality customer service is the key for businesses to grow and increase customer retention. Research reveals that customers are likely to switch brands after a single instance of poor customer service. Therefore, getting your customer service right should be your top priority in order to stay ahead of the curve and drivr profitable growth in the long run. Better customer service results in customer experience and this, in turn, can turn them into loyal clients.

Our customized analytics dashboards help businesses to map the customer journey across all customer touchpoints and gain a 360-degree view of each customer interaction with the business. Gain limited-time complimentary access to our analytics platform right away.

Foster better customer relationships

In the competitive business landscape, companies should focus on fostering good customer relationships in order to increase customer lifetime value. The key to nurturing good relationships with customers is to make them feel heard,  cared, and appreciated. Also, to improve relationships with customers, companies need to tap into their expectations and interests. This is where customer survey can help. Surveying customers can offer valuable insights into their likes and dislikes and can help in increasing customer lifetime value. This can further help in offering personalized services for better customer experience and satisfaction. Keeping a pulse on you’re your customers want  can also help in taking immediate action to improve customer satisfaction in case of a sudden dip in the sales and can boost customer lifetime value.

Want more tips on how analytics can help you  increase your customer lifetime value  and generate more revenue from your existing customers? Get in us with our experts to learn more.

IR14

Why Should Your Business Calculate Customer Lifetime Value?

Customer delight, customer satisfaction, user experience, and customer relationship have been the focus of every marketer in this new age. But why are marketers so obsessed with those terms instead of capturing new customers? For starters, it is predicted that it is many times more expensive to get a new customer than to retain the existing ones. Then, there is also the fact that these customers do not generate revenues for one purchase. They generate revenues over their lifetime as long as they are with the brand. Calculate a $20 revenue every month for 20 years, and the figure suddenly looks gigantic. However, calculating customer lifetime value is not an easy task as it all depends on factors such as expected churn rate, discounted rate, and profit margin per customer. ManyRequest Solution Demo organizations still go through the pain of making all such calculations to estimate customer lifetime value (CLV). So why is calculating customer lifetime value so important?

Generate ROI on customer acquisition

Calculating customer lifetime value gives you insights on your most profitable customers. It helps companies redirect their marketing budgets to channels, which boost the lifetime value of a customer rather than gross profit on the initial purchase. As a result, companies are looking to maximize customer value against the cost of acquiring them. Focusing on CLV will dynamically change the economics of an acquisition strategy. It frees up the budget from acquiring unprofitable customers, which can be used to acquire profitable long-term customers.

Create effective messages and targeting

A thorough CLV analysis paves way for effective customer segmentation. Segmenting customers based on customer lifetime value can increase the relevance of your marketing communications, which, in turn, brings about a higher degree of personalization. Also, a company can gain insights into what category of product each particular segment of customers prefers.

Define business objectives and metrics

Calculating customer lifetime value is very important to create a benchmark for future growth and expansion. It is also an excellent metric to determine the worth of your business. It can, therefore, help businesses define growth, turnover, future sales, and net profit. Additionally, the CLV computations can be tweaked to figure out lifetime gross margins and costs based on the average order value. Also, other KPIs such as acquisition cost, growth in average shopper value, churn rate and repeat purchase growth can be balanced with CLV computation.

Enhance retention marketing strategy

Evaluating the causes of a marketing campaign is a pretty dicey thing. Mostly marketers commit the mistake of factoring in the instant revenue of a marketing campaign to calculate ROI of the campaign. However, it does not value the subsequent revenues bought by the customer along the way. One good way to assess marketing campaigns is the impact it made on the average CLV of the customer segment you were targeting. Consequently, it aligns the marketing department focus to improve customer retention.

Cross-selling and up-selling opportunities

CLV calculation provides a business with deeper insights into customer behavior. Based on the individual pattern of buying, businesses can accurately cross-sell and up-sell the right product to the right customer. Such opportunities directly increase the revenue base of the company.

To know more about the importance of calculating customer lifetime value:

Get More Info


customer analytics

3 Interesting Ways Banks Can Curtail Customer Churn Rate | Quantzig

Acquiring new customers is a more expensive process when compared to the retention of old ones. This is one of the main reasons why leading companies have put reducing the customer churn and improving their customer retention capabilities on their priority list. The banking sector is among the industries recording the largest rate of customer churn every year.

The rising competition in the market, which gives customers the liberty of choice and better offers, is one of the primary contributors to customer attrition for retail banking companies. To state the obvious, providing effective, meaningful service is key to reducing customer churn. But how can companies in the banking sector get there and bring down customers leaving them for competitor brands?  To identify early signs of potential customer churn, banks first need to start getting a holistic 360-degree view of the customer base and their interactions across multiple channels such as bank visits, calls to customer service departments, web-based transactions, mobile banking, and social media interactions. This would allow them to detect early warning signs of customer churn such as reduced transactions or stoppage of auto-pay or negative experiences, and you can take specific actions to prevent churn. 

At Quantzig, we understand the impact that customer churn rate can have on your business. And to help banking and financial services companies provide the best customer service and reduce customer churn rate, our team of experts have highlighted three strategies that they must consider:

How to Curtail Customer Churn Rate?

(more…)

Customer Segmentation Analytics

Secret Tips to Reduce Customer Churn Rate in the Telecom Industry

The telecom industry is reaching a saturation point for their voice sales and wireless penetration. It can be inferred that there are hardly any new customers to be tapped. Everyone is using the basic telecom services, making it difficult for telecom companies to grow their revenues by recruiting new users. What this means is that the only way to gain new customers is to take away customers from competitors. With easy number porting services and lucrative welcome offers, customers are more willing than ever to leave their current service providers. This poses a significant challenge in the telecom industry, that of managing customer churn. It is evident that competitors are providingFree demo exciting bundled offers,   price cuts, and packs to lure in customers. So in the age of cut-throat competition how can telecom companies reduce customer churn rate?

Developing a comprehensive customer view

You can only develop activities to retain your customers if you know them very well. So the first step to reducing customer churn is having a clear understanding of your customers in terms of behavior, attitude, and customer journey. It is essential to know how the customer was acquired, on-boarded, and disconnected, if applicable. The knowledge of such parameters includes data like their complete profile, product usage, discounts offered, network experience, feedbacks, and promotions. Telecommunication companies can aggregate such data with external sources to learn about competitive pricing, media spend, promotions, and other factors to get a detailed customer view.

Using advanced analytics

Merely collecting customer data doesn’t amount to anything. Telecom service providers should use sophisticated algorithms to mine through the massive pile of customer data. These algorithms are smart enough to identify hidden traits to predict which customers are most likely to churn. Subsequently, companies can then analyze the reasons behind their churn before coming up with solutions to prevent such an event. Hundreds of variables could be examined and compared with customers who churned before. So decision makers could define a threshold level, which when triggered sends out warnings to the specific team to resolve the issue. For instance, if the customer is discontent about network quality then algorithms can be set to place to alert the customer support team after any user faces more than five call drops within a span of a week.

Customer segmentation

Although computer systems have gotten more powerful, it cannot be used to treat each customer in singularity. Such a method is time-consuming and requires an enormous amount of resources. An effective method is to break the customer base into scores of microsegment. Customers can be classified into different cohorts based on specific traits and behavior exhibited by them. Based on that, different classes of offers can be devised for each segment of the customer to avoid customer churn. For instance, customers who are frequently running out of their data packs can be offered higher data usage packs for a discount.

Test, learn, and collect feedback

Computers are only as good as the humans that handle them is an old adage that still holds true. Sure, predictive analytics can dwell deep into customer insights, but it all depends on the telecom operator who implements changes in order to tackle the churn issue. Identifying customer churn beforehand is only half battle, correctly segmenting customers and providing a customized solution is equally challenging. Additionally, it is also essential to measure the result of such action to enhance future retention strategies. Finally, telco companies should add a little human touch by asking for customer feedback, so that they gain not only an analytical perspective of the churn problem but also a human input.

To know more about reducing customer churn in the telecom industry, customer retention, and CRM:

Get more info


Related posts

IR18

Non-alcoholic beverage sector market analysis – How customer behavior analytics solutions helped a non-alcoholic beverage firm to find the right target prospects

onsiteLONDON: Quantzig, a global analytics services provider, has recently completed their latest customer behavior analytics for a non-alcoholic beverage firm. The non-alcoholic beverages market is witnessing promising growth owing to rising disposable income, population growth, and changing lifestyles. In a bid to grab this opportunity, non-alcoholic beverage firms are looking to monitor customer behavior to generate predictive insights.

“The customer analytics solution offered by Quantzig helped the non-alcoholic beverages effectively anticipate the customers’ demand and offer a differentiated set of products through the appropriate distribution channel.” says an industry expert from Quantzig.

Request your FREE demo today!

The customer behavior analytics solution also helped the company find the right target prospect with similar attributes so that they can tailor their marketing campaigns to enhance the business performance. Additionally, it also helped the client blend and analyze customer data across all social media channels.

Additional Benefits of the Customer Behavior Analytics Solution

  • Help increase the customer lifetime value
  • Efficiently map customer journey and enhance customer loyalty
  • Identify at-risk customers and help in taking corrective actions to minimize customer attrition
  • To know more, request a free proposal

To know more about how our customer behavior analytics solution helped the non-alcoholic beverage client

Get more info

customer analytics

Can Increasing Churn Rates Dent Profits in the Telecom Industry?

The churn rates in the telecom industry are constantly on the rise, mostly due to increasing competition and elimination of switching costs. Customer loyalty in the telecom industry is almost extinct as service providers are battling to provide better service at a lower cost. To drive profitability, companies have to burn the candles at both ends by sweating blood to earn new customers and satisfying the existing ones to stay with them. The latter is Free demoevidently a more cost-effective option, which is why companies are adopting robust customer churn analysis solutions to retain profitable customers.

Acquiring New Customers Vs. Retaining Existing Ones in The Telecom Industry

The telecom giants in their early days were indulging in a fierce battle of reduced call rates, promotional offer, and compelling monthly plans to win over new customers. Later on, as the telecom industry approached its saturation point, companies realized the importance of reducing the churn rates. It costs hundreds of dollars in advertising and administrative expenses to acquire a single customer in the telecom industry. In contrast to that, when a single customer leaves, the company not only loses on the future revenues but also the resources spent to acquire the customer in the first place. Retaining the customer base also provides the company with opportunities to up-sell and cross-sell the products. For instance, the majority of the telecom companies have started a new offering called ‘Triple Play’ services to their customer combining TV, broadband, and phone services.

How can Quantzig’s team of churn rate experts help vendors in telecom industry?

  • Offer predictive churn modeling techniques to forecast the likely future behavior of the customers
  • Help devise marketing automation tools to segment clients by margin and adjust offers and solutions accordingly
  • Provide a concise dashboard comprising vital user data such as monthly recurring charge, contract duration, handset prices, and number of active subscribers

Why Should the Telecom Industry Opt for Customer Churn Solutions?

The customer churn solutions from Quantzig offers predictive models that accurately forecast the customers most likely to churn so that proactive steps can be taken to prevent such event. The models assess the telecom traffic in real-time to detect changes in usage patterns and experience levels. Such data helps telecom service providers to boost Average Revenue Per User (ARPU) through personalized offers and tailored bundles.

Enter Quantzig:

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.

“Without big data analytics, companies are blind and deaf, wandering out onto the web like a deer on a freeway,” said a leading data analytics expert from Quantzig.

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.

For more information on churn rate and how your company can benefit by adopting it:

Get more info Related Articles:

Answers to the questions

Food Service Client Leverages Quantzig’s Churn Analysis Solution to Achieve 2% Churn Reduction

In the ultra-competitive environment, every company’s businesses relies more on retaining the existing customer than acquiring new potential customers. According to the latest study, almost 65% of any company’s business comes from the prevailing customers as compared to finding a potential customer from a pool of customers. Customers of today are more agile and can make their purchasing decisions within a fraction of a second with the help of technology. With customer retention becoming a top priority for organizations, they have started resorting to robust churn analysis solutions. A churn analysis solution actively predicts the business churn rates and ensures better consistency in retaining customers. Through a complete churn analysis, organizations can predict overall customer satisfaction and their experience with respective services. Organizations can also identify and segment individuals and groups who are likely to discontinue the services and designate a data-driven retention strategy to retain such customers.

Quantzig’s churn solution analysis helps the client develop strategies to enhance and retain customers; thereby, lowering costs associated with onboarding new customers significantly. Also, effectively tracking customers preferences can further reduce the chances of customer attrition and enhance and bolster subscriber loyalty.

The Business ChallengeQZ_DEMO

A multinational food service client with a considerable number of branches globally was facing challenges retaining their existing customers. The client wanted to understand pricing and the level of competition in the food service landscape to devise effective ways to retain customers and enhance customer satisfaction levels. Furthermore, the client also wanted to understand the risks associated with individual customers.

With the varying behavior and preferences of the customers, the need to understand their satisfaction levels and desire to retain or cancel has increased. As a result, the client wanted to deploy a robust churn modeling to better understand customer preferences.

Churn analysisWant to learn more about our analytical methodologies?

QZ_RFP

Churn Analysis Solution Benefits

Our extensive research from multiple sources to decrease attrition and improve customer retention helped the client segment the customers based on behavior and demographics to improve retention and keep customers engaged and loyal. Also, with the help of Quantzig’s churn analysis solutions, the client was able to tailor their promotions and offers to positively influence customer behavior. Additionally, the agile and seamless access to all relevant data helped them minimize acquisition costs and increase marketing efficiency.

Churn Analysis Solution Predictive Insights:

  • Predict customers overall satisfaction as well as their experience with service quality
  • Identify potential network issues, competitive threats, and at-risk customers
  • Identify the negative customer experience trends and reduce attrition levels
  • Built a robust predictive model and gather data
  • Create new opportunities for cross-selling and upselling

Want to know more about churn analysis solutions?

QZ CTA

Related Articles:

 

Close
Quantzig Logo

Hello there!

Are you interested in Quantzig’s analytics solutions?

Contact us by submitting your details below and we will get in touch with you.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice