HOW TO RETAIN CUSTOMERS IN THESE CRITICAL TIMES?
Ruben Rodrigues, Data Strategy Manager at Enlightenment AI
Fabrice Blanc, Head of Group Strategic Alliances at OAKland Group
Due to Covid-19, customer behaviors have changed. Unfortunately, the consumers are today in an uncertain situation and the priorities are no more the same as before. The obvious consequence is a direct impact on the churn rate. This is where data science can be game-changing and help firms better optimize their business strategies.
Customer churn occurs when customers or subscribers stop doing business with a company or service. It is a common issue in business operations. Most of the time, when you analyze the cost of acquiring a new customer, you realize how cheap it is to retain an old one.
The churn reasons behind can be an inappropriate pricing model, a low customer experience, a lack of client consideration, a poor support or an unpleasant reputation. Among these reasons, to anticipate too much loss of business, you must identify your client motivations… data becomes your best friend.
What is churn analysis?
Analyzing data from churn behavior and trying to understand why and which customers are abandoning can change the way your business is managing customer relations.
Customer data conceals many hidden features translating emergent complex behaviors. But you have to consider also sector data, environment data, low signal data, etc.
Those features can only be analyzed and regularly monitored with appropriate algorithms and that’s where Data Science can be game-changing, building a 360º predictive churn model.
To make it possible, you need to centralize all of these data in a single source of truth platform.
Why a single source of truth platform?
To be effective, these churn analysis models, like any other predictive model, have to make sure that heterogeneous data can interact properly with each other, but also to be based on reliable, up-to-date and secure data.
In a centralized platform, you have the opportunity to integrate your own data from whatever sources (CRM, ERP, SRM, website…) with external data, such as data from your peers, companies with similar characteristics and churn behaviors. Looking at how customers are churning in your company as well as in other businesses, can enrich your data set and help you to adapt your business strategy quicker during changing times.
In conclusion, to start this period of turmoil serenely, it is preferable to keep your customers and develop new business with them, in complete confidence.