What is Customer Lifetime Value (CLV)?
The total amount of money a single client spends with any company over the course of their engagement with their products is known as customer lifetime value or CLV. And it’s a crucial Key Performance Indicator (KPI) for insurance business entity to monitor. Simply said, customer lifetime value enables the insurance company to determine the top-line value of an existing customer and It directs choices like:
- Which customers should they spend money on getting and how much money can they afford to spend?
- Which clients should they spend money on keeping and how much should they spend?
- Do their products and services encourage repeat business from customers?
- How well-executed are their overall marketing, customer experience, sales, product, and brand strategies?
Data Analysis & CLV
Increase in CLV can assure positive growth in business and profitability. To sustain growth and substantiate market share, increase in CLV is mandatory. So, the insurance companies are concentrating their business strategies towards increase of their CLV. As detail root cause analysis is required to attain that goal, Data Analytics plays an important role for this customer centric methodology. Prediction of CLV for new or potential customers on the basis of historical information is also important to formulate or calculate insurance premium, agent commission, business augmentation etc.
Why ACLYSIS?
- ACLYSIS provides the Automated Machine Learning platform with no code decision making system.
- The entire process is automated which is simple, quick and accurate.
- Get instant output as per requirement.
- Reduce cost, Save time and resources.
- Predict CLV for new / potential clients.
- Any organisation may easily implement better strategy to improve CLV.
- Segment specific promotional campaign may be designed for targeted client base.
- Understanding over the significant factors influencing Customer Lifetime Value (CL V).
- Reducing operational & promotional costs to achieve higher profitability.