Reduce Customer Churn
Forecast each customer’s attrition risk and attributions with analytics.
Your customers, even your best ones, aren’t with you forever. Customer churn refers to the high cost of customers leaving. We can replace departing customers with new customers, but it’s far easier and less expensive to retain existing customers than to find new ones.
We can do general retention marketing to reduce this churn, but it’s much more effective to target our retention marketing on those customers who have the highest risk of leaving. Apart from death, it’s been established with market research that most customers leave for two sets of events:
- Life events: Going to college, graduating from college, getting married, buying a house, having kids, getting divorced, retiring.
- Moments of Truth: Emotionally charged interactions with your customers, either positively or negatively.
Using your own customer data, actionized analytics can effectively alleviate churn for both of these sets of reasons:
- How can you predict these events? This is especially effective with life events. If you can find which customers are going through these life events, you can be proactive with your retention marketing.
- How can you best engage someone who is at high risk of leaving? Segmentation and personalization can address this.
We can help you with this in two ways: