Customer Lifetime Value Modeling for a Fashion E-commerce Firm Helps Foster Customer Loyalty and Drive Sales | Quantzig

LONDON--(BUSINESS WIRE)--Customer lifetime value calculation has been an age-old issue for fashion e-tailers. Though new econometric models such as return on ad spend (ROAS) have played a key role in serving the purpose, they tend to miss one crucial element- the customer. Today, customer-centricity is key to measuring the impact of marketing initiatives. As such, the metrics that put customers at the heart of decision-making are gaining popularity globally.

Quantzig’s approach to customer lifetime value calculation combines the application of dynamic micro-segmentation and predictive modeling techniques to accurately forecast customer value based on their purchase history, demographics, and other behavioral traits. Request a FREE proposal to know more.

While customer lifetime value prediction has been the focus of discussion in the e-commerce sector for some time now, implementation has always been a challenge for e-tailers. As such, customer retention has often become the de facto strategy adopted by players to gain a leading edge. However, with the evolution of technology and the growth of insightful datasets, customer lifetime value prediction has become an increasing priority for e-tailers and retailers alike.

Intensifying competition poses a new challenge for players in the fashion e-commerce sector

The fashion e-commerce sector covers a wide range of segments that cover retailers and exclusive luxury brands that contribute significantly to the global economy. However, it is also one of the most challenging segments that are highly impacted by economic uncertainty. In response to dynamism in the market, leading brands are now focusing on sustainable innovation in their core product design, manufacturing, and customer retention strategies. This, in turn, has prompted businesses to analyze the customer’s value from a sales and business perspective.

Quantzig is at the forefront of enabling business innovation to facilitate better outcomes and business reach. Contact us to learn more about our capabilities.

Engagement Overview

Quantzig recently collaborated with a leading fashion e-commerce company to help develop a customer lifetime value model. A high customer churn rate coupled with a stagnant customer acquisition rate for over six months prompted the client to take immediate action. They were looking at developing a customer lifetime value model to replace their existing customer acquisition and churn rate minimization strategy with a holistic framework to tackle the industry challenges.

Quantzig’s cross-functional team of 550+ seasoned analytics experts and data science professionals adopted a comprehensive three-step approach that focused on the development of a customer lifetime value model. The deployed framework helped the client to improve the retention rate of potential churn customer segments by over 10%. The complete success story on customer lifetime value modeling is now available.

Are you looking for more information? Book a FREE Demo to learn more about our proprietary customer analytics platform capabilities.

About Quantzig

Quantzig is a global analytics and advisory firm with offices in the US, UK, Canada, China, and India. For more than 15 years, we have assisted our clients across the globe with end-to-end data modeling capabilities to leverage analytics for prudent decision making. Today, our firm consists of 120+ clients, including 45 Fortune 500 companies. For more information on our engagement policies and pricing plans, visit: https://www.quantzig.com/request-for-proposal