Attrition
Identify customers with churn risk using Artificial Intelligence and take preventive action. Dedicated app for Customer Care/After Sales, and Marketing/CRM/Sales
Business challenge
How do you identify customers or users who are intent on abandoning the brand?
How do you convince them to stay, while keeping your offer attractive?
Is it possible to determine which actions to take, and based on the customer's value, so as to retain the and/or make them loyal?
How to decide whether it is appropriate to engage in activities or contacts with customers? At what time, and for which of them?
Why does a user no longer intend to choose my products or services?
What can I work on to reduce churn?
An effective solution to your needs
Lowering prices in order to attract customers is not a strategy: the effective approach to handle churn is to harness data. Attrition is an AI app that minimises customer churn rate.Whether handling an ongoing contract (telco or utility account, bank current account, etc.), a behaviour (retail purchase frequency, reduction in use of a product) or cessation of a service, it is possible to identify customers that could stop making the choice to purchase.Artificial Intelligence makes it possible to understand the reasons behind churn through specific indicators, and to predict these events, breaking down information available on the user, such as general details, transactions or data regarding satisfaction and interaction (e.g. complaints).The picture is completed with tools to optimise contact, which enable calibration of effort/commercial tools, attrition rate and value of customers that can be saved.
Unique of benefits Attrition
This app makes it possible to go beyond tools such as clustering and identify the variables that have an impact and the real causes underlying churn rate.
With skilful use of uplift modelling it is possible to undertake specific initiatives based on the reaction we want to get from the user, calibrating the action to be taken based on the profile of the person who leaves/risks leaving the brand. This type of modelling is based on 4 categories of customers:
- The recoverables: customers who would have abandoned, but who respond positively to the initiatives undertaken.
- The 'sleeping dogs', those users for whom paradoxically the action taken risks accelerating their abandonment.
- The 'lost causes', those who, even after initiatives taken in relation to them to prevent their abandonment, would not yield the desired result.
- The faithful, who guarantee a positive result, whether or not further action is taken, and on whom it is not useful to intervene as they would remain customers regardless.
With Attrition, it is possible to identify the 4 categories so as to focus on the first, avoiding wasting effort by engaging in activities towards the 'faithful' and the 'lost causes', and without disturbing the 'sleeping dogs'. A true calibration of actions against abandonment on the basis of ROI (Return on Investment).
Attrition is based on a systematic approach to churn in order to understand, predict and manage it. An effective mix of rules (very strong and simple alarms that need to be responded to immediately) and statistical models (Artificial Intelligence trained on the basis of examples, synthesis of strong and weak signals that can precede abandonment).
Areas of application
Manufacturing
Retail/Mass retail
Financial services
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Processes
Customer Care/After Sales
Marketing/CRM/Sales
Operations
Supply Chain
F&A/Risk Management
The benefits of choosing us
- Customer abandonment events identified in advance;
- cutting the costs of marketing actions;
- important increase in ROI;
- greater possibility of cross selling and up selling.
Successful cases
Banking
A well-known banking institution, with numerous branches throughout Italy, has detected a churn rate to counteract, also of long-standing loyal customers, but without understanding the causes of the churn. Thanks to Attrition, we were able to assist the company in identifying specific early warning signs of abandonment, enabling it to take action at an early stage, and reserving the most expensive activities for the highest-value customers, based on margin and potential. With Attrition, 83% of customer abandonment events were detected in advance, and in addition the Marketing division cut costs by 30% by rebalancing the use of channels, focusing on initiatives dedicated only to users with a definite positive reaction.
Multiutility
A large company supplying electricity, gas, environmental services and water approached us to take preventive action against abandonment by its customers. Thanks to Attrition and our approach, it obtained a clear view of the users at greatest risk of dropping out, chose to strengthen Customer Care (which had proved to be a key element linked to the churn rate), and was able to intervene with targeted initiatives such as service packages with special offers dedicated to at-risk customers, while also managing to do cross selling.
Mass retail
A major Italian retail company, with outlets throughout the country, needed to identify customers about to leave the brand, understand the causes, and reinforce loyalty. To meet this challenge, they decided to rely on Attrition, which allows them to predict customer behaviour and intervene in a targeted manner. This important organisation was able to understand which factors most influenced the propensity to churn, such as price, assortment, service, location and competition. Thanks to this analysis, it was able to segment customers according to their risk level and offer them customised proposals, such as discounts, promotions, coupons, free gifts or invitations to exclusive events. These actions had a positive impact on user retention and satisfaction, as users felt more valued and involved with the brand. The result was a reduction in the churn rate by 15% in six months and a return on investment of 300%. .The company was also able to identify in advance 5 times better than before who is about to drop out, so that the right anti-churn initiatives could be taken. A significant benefit, and an improvement in the user experience.