LONDON: Quantzig, a global analytics services provider, has recently completed their latest customer lifetime value analysis for a specialty retail client. The specialty retail industry is highly fragmented. To delight their customers and strengthen loyalty, prominent organizations are focusing on innovative ways to offer innovations, and convenience in their products.
“The specialty retail market is expected to experience exponential growth due to the macroeconomic factors such as rising disposable income, GDP, and consumer spending. The customer lifetime value is a forecast of the entire value a business derives from the relationship with a customer.” says an industry expert from Quantzig.
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The customer lifetime value analysis helped the specialty retail client to maintain the account statistics in terms of the customers spend per visit and the total number of visits gained from a particular customer. Additionally, the engagement also helped the client determine the average revenue per customer and the projected revenue that customers will generate during their lifetime.
Additional Benefits Customer Lifetime Value Analysis
- Ascertain the total number of visits by the customers by week and year.
- Measure the customer’s worth over a specific
- To know more, request a free proposal
The client: Renowned retail company
Area of engagement: Customer lifetime value
Over a decade, the specialty retail industry is witnessing a considerable growth owing to the rapidly growing middle class, sturdy economy, and the availability of trained manpower. The specialty retail industry is highly fragmented and comprises of stores that focus on catering merchandise including grocery stores, pharmacies, and boot stores. With the customers craving for authenticity, innovations, and convenience in their products offered, prominent organizations are focusing on innovative ways to delight their customers and strengthen loyalty. Also, the radical shift toward customer-centric environment is compelling businesses to look for transformative possibilities to change their retail outlook and offer personalization through their extensive product knowledge. Although the specialty retail market will witness exponential growth due to the macroeconomic factors such as GDP, rising disposable income, and consumer spending, several factors may influence the growth of the market.
Growing E-commerce: Also called the Amazon effect, the recent years have witnessed the entry of leading-edge e-commerce giants into the retail space. The present consumers are more demanding and are looking for convenient ways in their shopping activities. With the gradual growth in the e-commerce platforms, it becomes essential for brick-and-mortar space to stay relevant with these technologies.
Rising consumer demands: Lately, the busy lifestyles are forcing customers to look for more convenient options in their shopping activity. The shopping preferences of the customers are changing, and they are looking for authenticity and innovations in their product offerings. To efficiently cater to the growing demands of the customers, organizations are spending highly on their R&D activities.
To ascertain the changing demands and retain the brand value for the customers, leading organizations are utilizing the need for a reliable customer lifetime value solution. The customer lifetime value is a prediction of all the value a business will derive from the relationship with a customer. The principle of customer value believes that 80% of the effects come from 20% of the causes.
The Business Challenge
According to the latest research, specialty retail constitutes 50 percent of the organized retail market in India alone.
The client, a renowned specialty retailer, wanted to optimize their acquisition spending to maximize the customer value through minimum cost. The client wanted to seek ways to understand the value that the customer will bring to the business. With the help of a customer lifetime value solution, the client wanted to determine how much the company wants to spend on acquiring new customers and the number of times the company can expect the business. Moreover, the primary objective for the client was to measure the customer’s worth over a specific period of time.
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The Solution and the Business Impact
The customer lifetime value solution offered by Quantzig helped the specialty retailer maintain the account statistics in terms of the customers’ expenditures per visit and the total number of visits gained from the customer. The solution also gained an accurate understanding of the total number of visits by the customers by week and year. The engagement also helped the specialty retail client determine the average revenue per customer and the projected revenue that customers will generate during their lifetime.
Customer Lifetime Value Predictive Insights:
The engagement offered by Quantzig helped the specialty retail client define their customer relationships and make informed business decisions on the sales, marketing, product, and development. The engagement focused on tailoring the products and services to the customers, and design their financial investments to acquire the most profitable customers.
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Today, supply chain activities have become more complex due to the relentless pricing pressure and ever-increasing customer experience. Therefore, to implement a robust supply chain strategy, businesses in the specialty retail space should find promising solutions that can help them meet the needs of the customers in an agile and seamless manner. With the help of analytical services, organizations in the specialty retail space can improve operational efficiency and gain better visibility into the supply chain processes. Moreover, companies in the retail industry can increase supply chain responsiveness, minimize customer impact, and eventually reduce their costs. Also, through analytical services, organizations can monitor supply-demand relationships and effectively plan the inventory flow of goods and services.
To improve the suppliers’ performance and augment investment decisions, renowned companies in the specialty retail space are approaching companies like Quantzig. With years of expertise in offering a plethora of services, we help organizations in the specialty retail space identify the best-fit solution to reduce cost fluctuations and improve financial performance.
The Business Challenge
A renowned specialty retail client with a considerable number of stores spread across the globe was facing certain predicaments identifying the potential risks and streamlining their supply chain process. The specialty retail firm wanted to gain real-time insights into the supplier performance to improve their sourcing strategy. Moreover, with the help of analytical services, the retail industry client wanted to increase supply chain visibility, manage volatility, and reduce fluctuations in the cost. The primary objective of this engagement was to leverage analytical services to transform the supply chain into a more scalable and connected network.
Benefits of our Analytical Services
With the help of the analytical services offered by Quantzig, the specialty retail client was able to better manage vendor relationships and curtail the risks associated with the supply chain. The engagement also helped the client to gain accurate and granular insights on the vendors’ performance. With the help of Quantzig’s analytical services, the specialty retail firm was able to optimize logistics and route operations by minimizing inventory levels. Moreover, the retail sector client was able to leverage our analytical services to avoid the need of overstocking and better forecast the demand for products.
This engagement offered insights that helped the specialty retail client to:
- Tackle the challenges in the specialty retail space
- Enhance the supply chain visibility, demand forecasting, and logistics optimization
- Optimize supply chain networks to improve efficiency and reduce supply chain risk
- Optimize transportation and reduce the cost of operations