Quantzig’s Churn Analytics Engagement Helped a CPG Industry Client to Save Over US $20 Million Annually

Nov 30, 2018

Overview of Global CPG Industry

Globally, CPG industry companies act as a foundation for the contemporary consumer economy as it not only drives enormous amounts of profits into businesses like advertising and retail but also generates an immense portion of the GDP for nations across the globe. Lately, the CPG companies have started witnessing a move from offline to online channels with the evolving CPG industry trends to gain a stronger footing in the market. Moreover, CPG companies are thinking beyond conventional shopping to create and enhance customer experience owing to the recent CPG industry trends and digital advances.

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However, several factors are supposed to hinder the growth of the CPG companies. These factors include:

  • Fluctuating consumer demands: CPG companies need to be more dynamic and consumer-focused as the consumers’ needs and CPG industry trends are shifting. As a result, the profitability of CPG companies becomes dependent on how they cater to the changing CPG industry trends and the needs of consumers.

  • Decreasing operating margins: This is because there is an upsurge in the need to supply high-quality products while be being cost-effective.

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Customer Churn Analytics: Converting Minor Customer Interactions into Major Insights

Today, churn analytics has become a fundamental tool for reducing customer churn and determining your customers’ changing conditions, choices, and actions. Churn analytics also measures the number of customers whose business is lost over a particular timeframe.

In highly competitive industries where substitute products or services are readily available and the cost of retaining an existing customer is significantly lower than the cost of acquiring a new one, decreasing customer churn is the key to long-term profitability. The better segmented your consumer data, the more efficiently you can invest resources on customers who are most likely to respond to your offerings.

About the Client

The client is a CPG manufacturer based out of US.

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Predicaments Faced

The client, a prominent CPG manufacturer with business operations spread across the globe, wanted to estimate customer acquisition rates and devise effective churn analytics strategies to retain the most profitable customers. With the help of churn analytics, the CPG industry client wanted to seek ways to effectively predict churn and devise more targeted and personalized offers to achieve a sizeable reduction in churn. Furthermore, the company was looking to identify the evolving CPG industry trends and identify key manageable factors that drive customer churn.

Solutions Delivered

With the aid of Quantzig’s churn analytics solution, the CPG industry client was able to quantify the feedback from customers and address their queries to boost customer interaction and loyalty. Quantzig’s churn analytics solutions also helped the client effectively segment customers based on their behavior and revamp their marketing campaigns to decrease the probability of churn. Additionally, by using churn analytics, the client identified key CPG industry trends and developed an interactive dashboard that enabled them to monitor customer churn rates and the success of retention campaigns in real-time. This subsequently helped the CPG manufacturer save over US$ 20 million annually.


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