Tag: Customer segmentation

  • Home
  • Customer segmentation
customer churn analysis

Customer Churn Analysis: An Important Key to Boost Customer Retention Rates for Businesses

customer churn analysis

Companies across industries spend most of their resources, time, and efforts on customer acquisition, despite knowing the fact that the cost of retaining an existing customer is much lower than acquiring a new one. Therefore, customer retention should be the top priority for companies. Also, for companies analyzing factors responsible for customer churn and estimating the risk associated with individual customers are both important components that help in devising a data-driven customer retention strategy. Customer churn analysis acts as a key to bring these elements together and offers insights that drive smart decision making across an organization. 

Banks, telecom companies, insurance firms, and energy services companies, are some of the businesses that often use customer churn analysis as one of their key business strategies. With the rise of businesses based on recurring revenue models, customer churn has become an important business metric for almost all companies.

Are you finding it difficult to build a predictive customer churn model? Churn analytics solutions may hold the key to success. Get in touch with our experts to know more.

CONTACT US

Here are a few important reasons that make customer churn analysis important:

  • Customer churn analysis prevents revenue loss by saving extra costs in marketing and re-acquisition
  • The probability of selling to an existing customer is a lot higher than to a new prospect
  • Measuring the customer churn rate helps in calculating the customer lifetime value
  • Customer churn analysis helps in measuring the company’s health and long-term prospects
  • Customer churn analysis examines the rate of improvement in customer retention
  • Helps to identify customers segments that are best suited for your products or services

Steps to Enhance Your Approach To Customer Churn Analysis

Step #1: Calculate basic churn rate

The first step in customer churn analysis is to calculate the customer churn rate. There are several ways to calculate the churn rate. Customer analytics tools can help in calculating churn rate directly in real-time. This calculation not only helps in getting the quantitative metric of churn rate but can actually visualize it through the customer journey, understanding precisely the factors that lead to customer churn. Churn rate can be analyzed properly by understanding churn, which is of three types short-term, mid-term, and long-term. This duration is nothing, but the time period customers have been active before they decide to discontinue and cancel the service. To keep your customers engaged for the long-term, you need to reinforce the core value of your product or service consistently.

Customer acquisition management is a daunting task for companies. But our customer analytics solutions can help. Request a FREE proposal to know more about our portfolio of services.

REQUEST A FREE PROPOSAL

 Step #2: Identify at-risk customers to reduce churn

Prevention is always better than cure, don’t you agree? Some customer segments, and more importantly, some customer behaviours predict churn more clearly than others. Customer churn analysis helps to identify these behaviours efficiently in real-time. This further helps in adopting measures to make these at-risk customers stay. Companies are leveraging customer analytics solutions like customer churn analysis that helps them enhance their ability to identify at-risk customers and thereby reduce customer churn rate. Additionally, customer churn analysis offers a data-driven understanding of customer preferences and helps to find the best way to reduce friction in specific situations. Furthermore, this can help companies to easily prioritize opportunities for improvement.

 Step #3: Focus on the entire customer journey

Customer churn analysis can provide optimum results only when the complete customer journey and experience have been analyzed well. Different customers have different experiences and customer analytics solutions can help you visualize each of them, the various touchpoints encountered, and the actions that are taken from there. If you do not analyze the entire customer journey and only focus on the last interaction, it can result in deriving inaccurate and misleading conclusions which will do nothing to stem the tide of leaving customers. Customer churn analysis can pinpoint the drivers of customer satisfaction in a way that traditional analytics solutions cannot. By analyzing and quantifying what matters most to customers, companies can consistently provide better customer experience and measure their impact on customer churn rate.

Our customized analytics dashboards help companies to devise better customer acquisition strategies. Request a FREE demo below to gain better insights.

REQUEST A FREE DEMO

Step #4: Discover your most profitable customers and focus on retaining  them

All customers are not equal, and while you may want to retain all, resources are not unlimited. So, you need to shift your focus on the most profitable ones first. Customer analytics solution plays a big role in this endeavour by providing a quantitative and detailed picture of the entire customer journey. It helps in customer churn analysis by interpreting how customers interacted with the product and the problems they faced at every step along the journey. Using customer churn models, companies can group their customers into segments defined by a readiness to leave, profitability, and their response to offers. This can further help in reducing customer churn rate significantly.

 Step #5: Engage with your customers at optimal times

Companies have the tendency to communicate with customers when they either want to upsell or when the customer is breathing fire. But for better customer churn analysis, companies can use several other techniques as suggested below to proactively and consistently interact with their customers:

  • Satisfaction survey – Companies can conduct short, open-ended customer surveys which let customers voice their opinions in a convenient and easy manner.
  • Social media – Customers spend most of their time on social channels. So, companies can use different social media channels to analyze their opinion and response to their product and brands.
  • Feedback bar – Companies can incorporate a feedback bar into products and mobile apps, so that it becomes easy for customers to ask questions, comment on product’s features and give their feedback.
customer segmentation analysis

Designing a New Product Launch Strategy with the Help Customer Segmentation Analysis – A Case Study by Quantzig

The client is a tech giant based out of Canada. With years of expertise and specialization in the smartphone segment, the client wished to assess customer perceptions through a customer segmentation strategy, prior to the launch of their new product.

The Business Challenge

It’s no secret that for businesses today, a few customers are more valuable than the others. But to truly understand the customer and succeed in the long run, it’s essential to distinguish these differences and devise customized approaches that satisfy the needs of different customer groups. Today, as tech giants all over the world compete to drive customer loyalty and improve profitability, what differs is how well each of them comprehends their customers buying preferences and how they leverage this information to influence their behavior.

Customer segmentation analysis turns out to be the key to building that understanding. Through customer segmentation analysis businesses can not only gain detailed insights into various customer groups but can leverage such insights to improve customer loyalty and retention. Also, with the proliferation of marketing platforms available today, customer segmentation is more of a necessity for those who wish to grow sales, reduce attrition, and increase profitability.

Contact our customer analytics experts to know how we can help your business grow using targeted customer segmentation analysis solutions.

CONTACT US

The client, a leading tech giant was planning a new product launch strategy with respect to the 5G spectrum and its related opportunities in Canada. Prior to this launch, the client methodically wanted to understand their brand’s perception and how they could leverage new technologies to understand customer sweet spots that are specific to 5G and the foldable screen technology.

Top Challenges Faced by the Client

The three-fold challenges faced by the client included:

Problem Statement 1

The client needed to adopt a sophisticated approach to understand the behaviors of their existing and potential customer base.

Problem Statement 2

Though the new product launch strategy looked promising, the client had to gain in-depth insights into customer needs and preferences. Also, they wanted to develop a customer segmentation strategy to maximize the performance of all customer segments.

Problem Statement 3

The client also needed to optimize marketing strategies and engage customers through the right channel. This was a major predicament as it required the client to devise a long-term, holistic approach encompassing enterprise-level capabilities, technology, analytics, and customer data management skills.

REQUEST A DEMO

Solution Offered and Value Delivered

To gain the desired insights and to support the information needs of the client, our customer segmentation analysis experts at Quantzig adopted a comprehensive three-pronged approach.

Phase 1: Understanding customers

The initial phase of this customer segmentation analysis engagement focused on analyzing the different customer behaviors and their preferences, in order to divide them into different groups based on their behavior and preferences.

Phase 2: Analyzing brand perception

The second phase of this customer segmentation analysis engagement revolved around analyzing the customer’ brand perception and their

Phase 3: Aligning marketing communications with a new customer segmentation strategy

The primary objective of this customer segmentation analysis engagement was to develop a new customer segmentation strategy to analyze different customer groups and offer tailored solutions to meet their needs. The customer segmentation analysis solutions not only offered a snapshot of the current value of their customers but also helped them predict the future value of a customer.

Customer Segmentation Analysis Steps 

customer segmentation analysis

Customer Segmentation Made Easy with Quantzig's Customer Segmentation Analysis Solutions

Request a FREE proposal to know how you can benefit from our customer segmentation solutions.

REQUEST FREE PROPOSAL

By acquiring deeper insights around their customers, the client was better positioned to develop tailored marketing strategies that aligned to their customer behaviors and preferences. Also, by leveraging customer segmentation analysis solutions in conjunction with behavioral models the client successfully gauged the impact of segmentation over a longer horizon, along with the time it took to influence customer behaviors and drive meaningful results.

The customer segmentation analysis solution also enabled the client to:

  • Effectively deploy marketing dollars to maximize ROI from the most profitable customer segments.
  • Leverage a more cost-effective marketing approach through tailored strategies, aimed at increasing sales, improving cross-shopping, and driving profits.
  • Gauge the effectiveness of marketing campaigns by determining which offers and channels drive the best performance for each customer segment.

What is customer segmentation analysis?

(more…)

3d rendering of industrial workspace showing storytellingon computer screen. All screen graphics are made up.

Customer Segmentation – How A Leading Fintech Industry Player Enhance Customer Loyalty and Retention Rate By 20% in the Asian Market

What the Client Wanted

A fintech industry player – a leader in the Asian market wanted to understand customer characteristics to segregate the customers in terms of need-based and value-based segments.

The Outcome

Quantzig’s customer segmentation solution helped the fintech industry client gain a deeper understanding of their customers’ preferences. This subsequently helped them improve customer service and enhance customer loyalty and retention rate by 20%.

Summary of The Global Fintech Industry

Typically, fintech industry players use computer programs and other technologies to support or enable financial and banking services. Broadly, fintech can be defined as a technological innovation in financial services. Companies functioning in the fintech industry typically exist to provide or improve upon the existing financial infrastructure. The most significant opportunity presents itself in the fintech industry’s ability to disrupt the global financial services industry. As a result, major participants in the fintech industry are actively seeking new technology solutions to remain relevant and gain competitive advantages.Request Proposal Additionally, their willingness to adopt new technology provides a boost to startups looking to engage in this industry.

Industry Challenges

Rules and regulations: The most substantial risk is the regulation surrounding the fintech industry. Financial services are heavily regulated and fintech industry players are getting more attention from policymakers. Additionally, governments at all levels have taken an increasing interest in the financial services industry, post the global financial crisis. Old and new policies will have a significant effect on the success and failure of new companies.

Participant uncertainty: Although many banks are actively seeking newer and improved technologies to replace the outdated current technology, there are often massive complications in this transition. These complications can discourage industry participants and are crucial risks that need to be considered.

About the Client

An American company headquartered in the US. The company operates worldwide and specializes in the online payments system. 

Client’s Challenge

The fintech industry player wanted to develop a robust marketing strategy to target specific segments in the Asian market. As a result, the client needed to gain a deeper understanding of the company’s most profitable customers and adequately allocate its resources in a timely and efficient manner. Moreover, the primary concern of the fintech industry client was to gain an impression on who wants to buy the products and gain actionable insights to improve performance against the competitors.

Summary of our customer segmentation solution
To gain in-depth insights into our customer segmentation solutions for fintech industry players

Request Solution Demo

Business Impact

With the help of Quantzig’s customer segmentation solution, the fintech industry client gained a deeper understanding of their customers’ preferences. This helped them discover the value of each segment and accordingly tailor marketing efforts. Furthermore, the fintech industry client, with an aim to tap Asian market segments, maximized cross and up-selling opportunities and encouraged the customers to subscribe to more products and services.

Customer Segmentation Insights

Quantzig’s customer segmentation solution helps companies in the fintech industry to divide customers into measurable segments based on their needs, behaviors, and demographics. Additionally, companies in this sector can determine the profit potential for each customer segment and subsequently allocate marketing resources and maximize selling opportunities. Lastly, leading fintech industry firms can stay ahead of competitors and incorporate new services to meet customer expectations more efficiently.

To know more about how our customer segmentation solution helped a leading fintech industry player

Request Solution Demo

Related Posts:

IR16

Leveraging Customer Segmentation Analytics for a Media Services Provider

The client: A leading media services provider

Area of engagement: Customer Segmentation

A media service provider is an organization that complements its business processes by adding a set of media services. The services include access to the internet, streaming media, and other value-added services. Media services providers (MSP) also enable an application to control media for a particular transport mechanism.

Additionally, media services can be offered through various mediums including video, audio, and even text media, all of which are used in communications, business, and entertainment. It starts right from the QZ- Request free proposalconception of ideas through to the final broadcast, including the design of content, and production.

The Business Challenge

The client, a leading media services provider, approached our team of experts to help them gain better insights into the customer’s needs and preferences. The client also wanted to gain a better understanding of customer behavior by grouping them into various segments. The media services provider was also looking at devising strategies to identify customers with the highest likely lifetime value or conversion rate. Moreover, they wanted to target best prospects and maximize customer retention.

Customer Segmentation

To learn more about our analytics solutions

QZ- request a demo

The Solution and the Business Impact

The customer segmentation solution offered by the experts at Quantzig helped the media services provider to employ the best statistical technique for customer segmentation. It also helped them break down their potential customer base into smaller sub-segments. Moreover, leveraging Quantzig’s customer segmentation analytics aided the client in developing separate marketing programs that are designed to appeal various customer segments. This also helped them develop a customized and more focused marketing message.

Customer Segmentation Solution Predictive Insights

Customer segmentation is the most important area that directly impacts the profitability of any organization. This is because it helps in focusing a marketing campaign on customers that are most likely to respond, rather than targeting customers with irrelevant campaigns. Moreover, to maximize distribution strategies and value of the content, organizations need to understand their customer base. Quantzig’s customer segmentation solution plays a crucial role in bringing a uniform understanding across different departments. Therefore, customer segmentation should be implemented in business processes to make an impact on the overall business efficiency.

Here are a few media trends that are bringing about disruptions in the global media services industry:

  • Targeted advertising: Organization today, opt for targeted advertising strategies to maximize ROI by targeting the potential customer segments. It also helps firms to gain a better understanding of their target market; thereby, achieving better results with the advertising campaigns. It also enables companies to target end-users based on data that relates to the
  • Implementation of augmented and virtual reality: To differentiate themselves from their competitors, leading media services providers are incorporating advanced technologies such as virtual reality and augmented reality. Also, these technologies are gaining traction due to their ability to enhance the storytelling capability.
  • Wireless network technologies: Leading media services companies are focusing on leveraging the use of technologies such as 5G wireless network technology to maximize the capability of their services.

To succeed in this digital era, media services providers must consider implementing strategies to serve the end-user segments based on their needs and preferences. This necessitates the need for leveraging customer segmentation to target potential customers.

Want to know more about our approach to customer segmentation and how we helped a leading media services provider identify and adjust to the latest media trends?

QZ- Get free info

Related Posts:

IR18

Pharmaceutical Products Supplier bridges the Price Gaps in the Products Offered using Customer Segmentation Solution

pharmaceutical products

LONDON: Quantzig, a global analytics services provider, has recently completed their latest customer segmentation solution for a pharmaceutics products client. As the access to healthcare is increasing, prominent businesses are planning to manage healthcare funding and take effective measures to reduce the price gaps between local and international brands. Additionally, factors such as the rise of aging population, urbanization, changing lifestyles, and increasing incidences of chronic diseases are expected to drive the growth of the pharmaceutical products space.

“Customer segmentation helps pharmaceutical products suppliers to divide their customer base into sub-segments to tailor their marketing efforts adequately. Furthermore, customer segmentation also helps businesses gain a deeper understanding of their customers’ preferences and needs to maximize cross-selling opportunities..” says an industry expert from Quantzig.

Request your FREE demo today!

The customer segmentation solution helped the pharmaceutical products client to identify methods to improve product and service opportunities and establish better relationships with their customers. Also, the pharmaceutical products supplier was able to predict the most profitable customer segments and allocate their capital resources efficiently.

Additional Benefits of Customer Segmentation Solution

  • Differentiate customers based on their economic value
  • Identify the most lucrative opportunities and consequently increase revenues on investment.
  • To know more, request a free proposal

To know more about how our customer segmentation solution helped the Pharmaceutical products client

Get more info

Copyright © 2007-2019 Infiniti Research Limited. All Rights Reserved.