case study

Customer Lifetime Value Model

Insurance

Business Impacts

+5

Points increase in average net promoter score (NPS)/sentiment score

10%

Increase in average customer life span with targeted customer outreach

50%

Time reduced in customer interaction with personalized touch

10%

Growth in revenues from existing customer base compared to acquisition costs for new customer

Customer Key Facts

  • Location : North America
  • Industry : Insurance

Problem Context

The customer is a leading pet health insurance company in the U.S. and Canada that provides insurance for pet owners to cover veterinary bills. Their Marketing team wanted to focus on high-value customers and make data-driven business decisions for improved targeted marketing.

Challenges

 

  • Uncertainty in data source
  • Lack of rule set to classify high-risk customers
  • Difficulty in integration of customer churn, spend forecasting, and customer segmentation models
  • Identifying the correct attribution of the customer

Technologies Used

Google Cloud SQL

Google Cloud SQL

Zeppelin Notebooks

Zeppelin Notebooks

Tableau

Tableau

Google Cloud Storage

Google Cloud Storage

Google Compute Engine

Google Compute Engine

Google's BigQuery

Google's BigQuery

Developing a Customer Lifetime Value Model to Identify High-Value Customer Groups For Improved Targeted Marketing

Solution

Quantiphi built a Customer Lifetime Value prediction model to help the Marketing team identify the lifetime value of a customer by comparing the profitability and cost per action (CPA) data. Tableau dashboards were also created for them to visualize the data and identify customer buckets responsible for high loss.

The Marketing team can better understand the customer journey and identify the right target groups of customers. In turn, increasing customer retention rates by evaluating the current and the future value of the customers and identifying the types of insurance policies that lead to customer retention.

Result

  • Improved customer targeting
  • Enhanced business decisions
  • Minimized revenue loss

Start Your Next Gen AI Journey Today

Discover how Quantiphi’s AI-powered solutions can transform your business. Fill out the form, and we’ll help you explore tailored AI strategies to unlock new opportunities for growth.

Thank you for reaching out to us!

Our experts will be in touch with you shortly.

In the meantime, explore our insightful blogs and case studies.

Something went wrong!

Please try it again.

Share