How to recognize customer about to leave?
The prevalent approach is to trigger the retention process when one of following events occurs:
- Customer had not used service or bought a product for a very long time
- Customer asked for contract termination
- Customer unsubscribed
- Customer did not sign a new contract
Argo Team uses advanced data analysis techniques to establish a process consisting of:
- Analyzing customer behavior
- Create a customer profile
- Recognize defection pattern
- Follow up customer actions
- Setup trigger for customer entering defection pattern
The main benefit of such an approach is that early recognition of possible churn reduces the customer retention costs and improves your retention rate.
How do you select a relevant retention offer?
Instead of sending the same offer to all defecting customers, the offer is created based on the analysis of customer transactions and segmenting them based on their preferences.
How do you make sure the future sales for a customer are below his retention costs?
Try to keep only customers with predicted value higher then retention cost, based on customer transaction history and customer profile.