Applying Customer Lifetime Value to Justify Investment in Clinic Management System to Improve Customer Engagement in a Multi Chain Clinic

DOI

10.2991/icebef-18.2019.152How to use a DOI?

Keywords

Operational excellence; customer experience; customer engagement; CLV; investment analysis; WACC

Abstract

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.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - 10.2991/icebef-18.2019.152
ID  - Djaya2019/05
ER  -