What the Client Wanted
The home health care client wanted to determine the potential value of their customers in order to identify the right marketing mix model and strengthen their customer retention strategies.
Leveraging customer lifetime value solutions enabled the client to devise effective strategies to enhance their relationship with patients. This customer lifetime value engagement entailed the implementation of a detailed analysis of the patient groups to identify strategies that are best suitable to retain and drive profits in specific user groups.
Overview of the Home Health Care Industry
The healthcare industry is booming at an accelerating rate and is expected to do so in the coming years. This has resulted in the development of a new segment that focuses on offering value based home healthcare services. The growth of this segment is also being influenced by the rise in adoption of healthcare technologies along with the dynamic nature of patient needs.
However, a widely accepted trend in the healthcare industry is the implementation of analytics-based solutions. Analytics has transformed many industries globally, and the healthcare industry is no exception. Also, healthcare analytics not only acts as a tool to cut down costs and enhance customer experience but also helps drive business growth. Though the majority of players in the healthcare industry are unable to leverage analytics to its full potential it is definitely worth investing in. The various benefits of implementing such solutions have prompted home health care service providers to the to seek expert assistance in leveraging healthcare analytics in order to be a part of an evolving healthcare industry.
Healthcare Industry Challenges
- The effort required to hire and train the right staff: Providing high-quality home health care services start with hiring the right staff and training them with the necessary skills required to offer enhanced services. For a new market player, this may pose several challenges due to their inability to identify the right candidate. However, with the right processes and protocols in place home health care service providers can enhance the entire training and staffing process.
- Increase in adoption of healthcare technologies: With the proliferation of cutting-edge healthcare technologies such as wearables and portable health monitoring systems, players in the home healthcare services segment are increasingly being challenged to devise new ways to enhance the patient’s experience and drive value.
To improve focus, profitability, and efficiency of services, the client – a leading home health care services provider – approached Quantzig. The client wanted to leverage our vast experience in healthcare analytics to embrace new partnerships with healthcare service providers and realize new opportunities to serve a wider end-user base. The home health care service provider wanted to make the most of customer lifetime value analysis and devise suitable strategies to enhance their workflow.
Benefits of our customer lifetime value solution
To gain in-depth insights into our customer lifetime value solutions
The customer lifetime value solution offered by our analytics experts enabled the client to categorize the end-users into two segments namely- the most profitable client segment and the least profitable client segment. The engagement also assisted them to leverage the use of healthcare analytics to enhance customer retention strategies. Additionally, the consolidation of patient data offered an in-depth understanding that enabled the home health care services provider to devise specific marketing strategies to suit their needs.
Customer Lifetime Value Solution Insights
To make the most of new opportunities in the healthcare industry, players in the home health care services segment should focus on devising end-to-end operating models that enhance the customer experience as well as drive organizational value. This includes the development of effective customer retention strategies, technology implementation, and the use of analytics to ensure that they possess the ability to integrate customer data and understand the appropriate resources necessary for leveraging analytics, as well as tactical issues surrounding the use of patient data.
To know more about how our customer lifetime value solution helped a leading healthcare industry player
- Customer Segmentation – How a Leading Fintech Industry Player Enhance Customer Loyalty and Retention Rate by 20% in the Asian Market
- Churn Analytics for a Leading Fast Food Retailer – A Quantzig Case Study
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. Many 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:
LONDON: Quantzig, a global analytics services provider, has recently completed their latest customer lifetime value prediction for a telecom industry client. The global telecom industry consists of giant players that make communication possible on a global scale, through either the phone or the Internet. Internet service providers, cable companies, wireless operators, and satellite companies are some of the most significant companies in this sector. The telecom industry is mainly driven by technological innovations and developments, which help to offer a wide range of communication services at low-cost margins.
“The customer lifetime value calculation offered by Quantzig assisted the telecom company to identify the necessary marketing efforts to reduce churn rates and ensure the right amount of marketing investments toward profitable customers. They were also able to profile the potential customers and develop a marketing strategy that maximized retention, net profit, and minimized acquisition and re-marketing costs.” says an industry expert from Quantzig.
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The customer lifetime value prediction study helped the client optimize interactions and conversations to drive customer referrals, repeat purchases, and reduce support costs. These solutions also offered real-time and actionable insights into customers based on future cash flows, which helped the client proficiently differentiate customers in terms of the profitability.
Additional Benefits of the Customer Lifetime Value Study
- Achieve a higher retention rate and build long-term relationships with the customers
- Drive repeat purchases, customer referrals, and reduce support costs
- Develop a marketing strategy to maximize retention and net profit
- To know more, request a free proposal
To know more about how our customer lifetime value study helped the telecom company
LONDON: Quantzig, a global analytics services provider, has recently completed their latest customer lifetime value solution for a retail industry client. Leading retail industry companies are focusing on understanding the art and science of catering to the customers in order to sustain in the extremely competitive market. The changing trends in the retail industry have impacted the growth of this sector. Furthermore, the exponential growth of technologies has brought about several transformative possibilities, both in the store and beyond.
“Since retaining and organically growing customers is a far more cost-effective task than acquiring new customers, leading organizations have started realizing the importance of calculating customer lifetime value. This technique is highly helpful in formulating optimal strategies for customer engagement, which, in turn, aids retailers in delivering tailored services to profitable customers and retain them for more extended periods.” says an industry expert from Quantzig.
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The customer lifetime value analysis helped the retail industry client gain actionable insights that helped them in identifying and analyzing customer behavior over a period of time. The solution also helped the retail industry client in predicting churn and enabled the design of new programs to reduce customer attrition levels.
Additional Benefits of Customer Lifetime Value Analysis
- Gain a detailed understanding of what drives high customer lifetime value
- Develop personalized strategies to improve customer loyalty and brand recognition
- To know more, request a free proposal
To know more about how our customer lifetime value analysis helped the retail industry client
The client: Broadband services provider, Size:>$5 billion in revenue, Area of engagement: Customer lifetime value prediction
The global broadband services market has benefited from excellent cross-platform competition, with a comprehensive DSL infrastructure being complemented by extensive cable networks and a growing fiber presence in the last few years. Additionally, commercial considerations meant that broadband services were for some years restricted to a few urban areas, though more recently the sector has received considerable financial support from the government across the globe and are aimed at building fiber-based networks across the countries and promoting high-speed broadband services to end-users.
The Business Challenge
The client, a global broadband services provider, wanted to efficiently spend their resources to acquire potential customers and retain the most profitable ones. Additionally, the client wanted to seek ways to make important business decisions in terms of sales, marketing, and new product development and offer reliable customer service and support to the end-users. Through a robust customer lifetime value prediction engagement, the client wanted to develop and maintain a long-term relationship with their most profitable customers.
Want to learn more about our customer lifetime value solutions for telecom industry companies?
Customer Lifetime Value Prediction Benefits
With the help of Quantzig’s customer lifetime value prediction engagement, the broadband services provider sought ways to ascertain adequate marketing efforts to reduce churn rates and ensure right marketing investments towards the right clients. This helped them accomplish a higher retention rate by increasing spending on customer service. Additionally, the client was able to develop a marketing strategy that minimized acquisition costs and remarketing costs.
Customer Lifetime Value Predictive Insights
Quantzig’s customer lifetime value prediction engagement helps firms in the telecom industry space to reduce the attrition rates. The engagement also helps companies to gain real-time insights into the customer based on future cash flows and efficiently distinguish customers. This further allows companies to profile the right customers and build long-term relationships.
However, our analysis of the global telecom industry shows that broadband services providers across the globe are facing challenges in terms of:
- Regulatory reforms: The mounting consumer demand and rapidly advancing communication technology are forcing broadband services providers to reevaluate their business strategy and encourage investments in high-speed networks. Additionally, the development of 5G services is compelling broadband services providers to improve their existing digital infrastructure and meet the growing demands.
- Diversification: Today, broadband services providers are growing at a rapid pace and are expanding their reach to new markets. Consequently, it becomes essential for these service providers to develop innovative service lines to increase profitability and augment their ROI.