Keep your customers while attracting new ones
The potential of better customer service
As you build your company, you’ll build a relationship with consumers. However, some of these relationships are not going to work, and being able to understand why is critical to business success. Customer churn analysis can read the health of your customer base across your company, allowing you to understand not just customer purchasing behaviour, but also behaviours that may indicate that a customer is about to leave you – and ways in which you can prevent this.
Your customer, their way
Predictive analysis into customer churn looks into customer history. Ultimately, it looks at your customers and addresses the best way to treat them –rather than looking at how they should be treating you. Customers require tailored attention in an ever-digitalised world. Your service to them determines their success with you and should be monitored according to 3 key factors:
Timeline: when a customer began purchasing with your company, how frequently they place orders, and whether this frequency has changed over time
Monetary patterns: how much a customer spends with you, and the patterns of this spending
Profitability: what is this customer worth to you in dollars, and what is their profitability
The information from this data will provide you with an analysis of consumer behaviours according to their loyalty – and offer you a means to satisfy your customers as valuable assets to your business. Predicting and influencing their behaviour brings you revenue, but bare in mind that you are influencing not forcing a customer.
To reduce churn and increase retention you must satisfy your customer by providing better service. This is something predictive analysis is designed to do. Not only can it identify when and where a customer may leave, but it will determine a means by which to keep and maintain consumer relationships.
The churn challenge
Customer churn is one of the most popular uses of Big Data in business. Consisting of the detection of customers who are likely to cancel a subscription or service, it uncovers those who are likely to love and leave you, or who are on the verge of abandoning ship. The ‘churn rate’ refers to the percentage of customers who leave your service, or who are using your company less than they have in the past. Retaining customers is easier and cheaper than finding new ones, so anticipating churn and getting ahead of it reduces both company cost and risks associated with efficiency and competition.
Thanks to predictive analytics, your big data can be used to both find and keep customers. Your insights should enable you to:
Detect who will leave and what their value is to your company
Acknowledge why they are making a shift away from your company
Correct their course back to you
Your aim should be to increase your ability to react and retain customer churn and to reduce the possibility of it happening in the first place.
Keep your customers by keeping them happy
Loyalty is derived from experience, and a consumer should experience good service with your business. Predictive analysis will allow you to see who you might lose, and how you can keep them. The last thing you want customer churn within your company. Fortunately, these losses can be forecast and prevented, and you can develop strategies focused on maintaining, rather than solely generating, great customer relationships.