Customer Attrition (Churn) Prediction

The old adage that it costs a lot less to retain an existing customer than to acquire a new one is as valid as ever.  The benefits of reducing customer attrition are clear - lower customer acquisition costs, increased profits, increased customer confidence and improved share price, resulting in enhanced reputation and corporate image.

Minotaur™ Attrition / Churn Prediction Solution comprises behavioural modelling technology that allows organisations to monitor the typical behaviour of each and every customer.  In this way it can flag up certain behaviour that could be an indication that the customer is ready to switch allegiance to another service provider, for example reduction in usage, or paying off an account in full. 

The solution predicts the loss of valuable customers well in advance to enable the formulation of effective retention strategies, such as:

• Special offers 
• Discounts 
• Enhanced credit limits 
• Product/service relevant to the customer, such as a new/different credit card or tariff plan

The same technology can be applied to segment the customer base to assist with 'cross' or 'up' selling, i.e. to offer customers additional or more expensive products, tariffs or service plans.

Helping to understand prospective customers' motivations focuses marketing efforts by identifying the relevant people to receive a specific offer or product, resulting in:

• Maximum marketing response
• Reduced mailing and acquisition costs 
• Increased customer satisfaction

Acquisition costs are reduced by capitalizing on sales opportunities in the current customer portfolio, using profiling to:

• Explore linkages between the products/services customers presently buy and the ones they might be persuaded to buy 
• Increase customer satisfaction by only offering products for which they qualify
• Increase customer retention by providing customers with more than one product or service

   
Download Minotaur™ Churn Prediction fact sheet to find out how to increase customer loyalty through churn prediction, up-sell, cross-sell and customer segmentation.


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