Why should you focus on Churn & Retention?
Satisfied customers are the foundation of most companies. They generate a steady stream of earnings and are more open to additional sales. Studies have repeatedly shown that it is significantly more expensive to acquire a new customer than to retain an existing one.
With churn prediction, you have the opportunity to spot customers who are at high risk of leaving the business. Specifically, a churn model can predict the probability of a customer churn within a specific period of time. Coupled with a customer lifetime value calculation, you can also see which customers are most valuable to the business.
With Kapacity’s Churn & Retention Framework, we do not just spot churn – we act on that basis. With our retention actions, you get a powerful tool that allows you to retain the right customers.
Based on insights from the machine learning model, business hypotheses, domain experts and customer valuation via CLV, actions are designed that will be taken into use by the business.
These actions are measured and tested in a continuous feedback flow, which continuously improves the model, insights, actions and the business.