Business Challenge
Over the past few years, the financial services industry has witnessed positive changes, driven by increasing popularity of FinTech companies and technological advancements. But, as the financial services sector advances, customer demands have also increased. This has pressurized companies in this sector to offer better services to keep their customers engaged. As a result, financial services providers need to develop optimal strategies for enhancing customer experience.
With regulatory requirements continuing to increase and entry of new players in the market, the client, a leading financial services provider was forced to spend a large amount of their revenue for acquiring new customers. This proved to be a costly affair for the client, both in terms of revenue and resources. Therefore, they approached Infiniti Research to leverage our customer lifetime value analysis for gauging the lifetime value of customers and identifying strategies to retain them. With Infiniti’s customer lifetime value analysis, the client wanted to better segment their customer groups, forecast customer demands, reduce customer churn, and win back customers.
Solutions Offered and Value Delivered
With Infiniti’s customer lifetime value analysis solution, the client was able to understand how much a customer is worth and develop optimal strategies for customer engagement. This helped the client decrease churn rate by 17% and outperform their competitors.
Also, our customer lifetime value analysis solution helped the client to:
Effectively segment customers – By better profiling customer groups, the experts at Infiniti Research helped the client offer customized services for their customers, target customers based on value potential, and gain the maximum possible revenues per customer.
Effectively forecast demands – By accurately predicting the future demands of the customers, the client was able to better plan their marketing strategies. It also helped in cutting down on cost by guiding better resource allocation.
Reduce customer churn: A better understanding of customer needs helped the client in improving customer loyalty.
Win back customers – With Infiniti’s customer lifetime value analysis, the client was able to reduce customer attrition rate and win back lost customers.
Why is Customer Lifetime Value Important?
Customer lifetime value depicts a customer’s value to a firm over a period. In situations where your organization needs to stay ahead of competitors, focussing on customer lifetime value model allows you to design an effective strategy with more concise budget planning. Infiniti’s customer lifetime value analysis helps firms segment customer effectively, increase loyalty, improve forecasting, and recognize best customers.
Are you are still wondering why satisfying your customers is important for your business growth? Read our success story which explains how enhancing customer satisfaction helped a financial company increase customer lifetime value and reduce churn by 20%.
