Predictive Analytics can Reduce Customer Churn and Optimize Marketing Efforts
September 17, 2020
All customers are not equal – there are some your business just can’t afford to lose. Do you know who they are and what is required to retain them? With predictive analytics powered by Actian, you can do just that.
Companies have been using statistical modeling, data correlation and behavioral forecasting for many years to profile customers. Unfortunately, traditional capabilities have been limited by the amount and types of data they have been able to include in the analysis, leading to incomplete and inconclusive results. With Actian, you can increase the accuracy of your churn predictions by combining traditional transactional and account datasets with call center text logs, marketing campaign response data, competitive offers, social media and many other sources to develop a truly holistic understanding of your customer’s buying behavior. Having the ability to leverage all this data will enable your organization to leverage predictive analytics more effectively.
Aggregated customer profiling data can help you discover new classifications and customer segments and assign lifetime value and churn scores that clearly indicate which of your customers are most important to your business – and who you can’t afford to lose. This information can be used to customize your customer experiences, provide enhanced support and create programs to retain your high-value customers. Identify the forces that influence these customers’ buying behavior and use them to customize marketing efforts, provide personalized customer service and even optimize your service supply chain. Predictive analytics is more than just a big data play, it is a critical business requirement.
Just as not all customers are equal, neither are all customer segments. Some groups of customers are high-value, purchasing your products and services repeatedly, ordering large quantities and generating large profit margins. Other customer segments are low-value, with larger customer acquisition costs, low-order volumes, few repeat purchases and low profitability due to price competition and discount demands.
If you want your company to grow and thrive, then you must focus your marketing and product planning efforts on developing high-value customer segments and potentially offload less-profitable segments. To accomplish this effectively, you must understand your customer segments and which customers align to these segments. Actian helps you do this by giving you the tools to aggregate all your customer data in one place, analyze it in real-time and make actionable insights available to your staff. These insights can help you improve customer satisfaction and loyalty, optimize supply chains, accurately price products, develop effective marketing campaigns and reduce the likelihood of your customers taking their business elsewhere.
Some level of customer churn is inevitable. Customers’ needs change and the offers from your competitors are enticing. Predictive analytics help you identify customer behavioral changes and market threats early, so you can make informed decisions about how you want to respond. Stop guessing with your marketing investments and focus your resources on the activities that will make your customers happy, increase their lifetime value to your company and generate sustainable results.
Actian Data Platform can help. Actian is a highly efficient data analytics database service that can process large amounts of data in near real-time by separating it into small chunks that are processed in parallel. What this means is you can perform customer-churn analysis behind the scenes to retain more customers. To learn more, visit www.actian.com/data-platform.
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