Applying Customer Lifetime Value to Justify Investment in Clinic Management System to Improve Customer Engagement in a Multi Chain Clinic
Kristoforus Hendra Djaya, Erman Arif Sumirat
Kristoforus Hendra Djaya
Available Online May 2019.
- https://doi.org/10.2991/icebef-18.2019.152How to use a DOI?
- Operational excellence; customer experience; customer engagement; CLV; investment analysis; WACC
- In Harmony Clinic is the first vaccination clinic in Indonesia. Currently, there are potential competitors readily acquire its market. The aims of this study are to explore customers’ perception, frustration points, analyze the root causes, ways to improve customer experience, investment needed and its justification. We did initial field exploration using qualitative analysis. Customers’ insights were derived from IDI and FGD. Operational processes were analyzed using visual stream mapping and any gap between what should be and what has been done were identified. Potential problems were analyzed using quantitative analysis to quantify customer complaint rate, its classification, frequency of operational defects, and its pareto chart. Fish bone diagram was used to analyze the potential root causes. We propose to provide quality personnel training & performance management, establish service procedure, and system implementation to support operation. Current clinic management system is not sufficient to support growing multi-chain clinics like ours anymore, hence an upgraded version is needed. We then analyze the NPV of investment needed, our WACC, our current cumulative total CLV and finally compare it with predicted future cumulative CLV produced from increasing customer engagement using sensitivity analysis to ultimately justify our investment.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Kristoforus Hendra Djaya AU - Erman Arif Sumirat PY - 2019/05 DA - 2019/05 TI - Applying Customer Lifetime Value to Justify Investment in Clinic Management System to Improve Customer Engagement in a Multi Chain Clinic BT - Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018) PB - Atlantis Press SP - 715 EP - 721 SN - 2352-5428 UR - https://doi.org/10.2991/icebef-18.2019.152 DO - https://doi.org/10.2991/icebef-18.2019.152 ID - Djaya2019/05 ER -