Do you ever get the feeling your business is spinning its’ wheels in the mud and experiencing customer churn?
You’ve done your research, strategically allocated your marketing budget and you’re having some solid wins on the new customer front. But, come time for that end of the month business review you have to face the fact that you’re just not getting the overall growth you expected; customer churn could be around the corner.
Chances are, you’ve got a hole in your bucket, in fact there could be numerous holes in your bucket! You’re losing customers faster than you can acquire new ones. It’s incredibly frustrating, especially when the customer loss is unexpected and comes as a complete surprise.
So you head out on the search for the reasons why customers are churning only to find out that there are many reasons – too many to resolve with just one solution. Many organizations suffer from the same fate (albeit with different levels of resources to throw at possible solutions). Traditionally, that’s exactly what they’ve all done. They’ve tried to fix the issues after the fact.
So how can you stay ahead of customer churn?
Often, the answers lie in your customer data — but with millions of transactions and hundreds of products it would take a team of data scientists several months to analyse that data and deliver insights that your business needs right now.
You may have heard of artificial intelligence and machine learning, two of the hottest buzzwords in technology these days. The evolution of these technologies has created a new breed of business intelligence called predictive analytics and is a modern-day solution to these common problems. What if you could predict your customer churn, knew exactly who was going to leave you before they actually did? What if you had a chance to prevent those leaks before they happened?
Customers who will churn often exhibit certain behavioral patterns over time, patterns that aren’t necessarily discernible to you when you meet them on a sales visit or track their behavior online. Predictive analytics solutions utilize machine learning algorithms that analyze your customer data and recognize trends and patterns that have historically led to customer loss for your business. They also deliver probability scores, lifetime value, best cross-sell opportunities and other key metrics or recommendations that can help you determine where to prioritize your retention efforts.
Predictive analytics literally gives you the ability to look into the future, to anticipate negative business outcomes before they actually happen. You then have the opportunity to re-engage with these customers – special promotions, offers, meetings, phone calls to give you a better than average chance of retaining a customer that otherwise may have slipped away forever.