Tag: customer churn analytics

Churn analysis

Quantzig’s Churn Analysis Engagement Helped a Financial Services Company to Improve Churn Forecast Accuracy by 2X

The client is a leading financial services company based out of Sweden who is known for serving more than 12 billion customers across the globe.

Over the last few years, the importance of churn analysis has grown significantly in the banking and finance sector. This can be attributed to the rise in the number of customers who switch over to other financial service providers.  Also, with the help of churn analysis models, the probability of winning back lost customers looks promising. Moreover, financial service providers are well aware of their existing customers, their creditworthiness, how they use their services, and their preferences. This makes it easier for them to retain existing customers rather than acquiring new ones. Consequently, leading companies are now leveraging churn analysis to understand, analyze and capitalize on customer behaviors and interests.

Talk to our experts to learn how our customer churn analytics solutions can help you gain a 360-degree view of your customers.

Business Challenge:

The client, a leading financial services company, had made significant investments in gathering and storing customer data but they had negligible investments into using the data for practical business applications. As a result, the client faced challenges in analyzing the complexity of datasets and consequently they witnessed a rapid increase in customer churn. By leveraging churn analysis the client wanted to improve the effectiveness of their marketing campaigns and develop new programs for customer retention. This is why they approached Quantzig to leverage its expertise in offering customer churn analysis solutions to devise an extensive data-driven analytics framework and reduce churn.

Leveraging our churn analysis solutions can help you improve customer relationships and win back former customers by enhancing customer loyalty. Request a FREE proposal to gain exhaustive insights.

Solutions Offered and Value Delivered:

The customer analytics experts at Quantzig adopted a comprehensive approach to help the client understand and tackle their core business challenges. In the first phase of churn analysis engagement, the experts focused on developing predictive customer churn models with the help of the client’s existing churn reports and customer datasets. Phase two of the churn analysis engagement revolved around improving churn metrics and accuracy of analysis to deliver valuable insights to the sales and operations team. In the third phase of churn analysis engagement, the experts focused on leveraging advanced customer analytics solutions and developed a customized dashboard to deliver in-depth insights into customer behavior. Also, they aimed at developing new programs and rolling-out initiatives to reduce churn rates and improve retention.

Our advanced analytics algorithms help businesses focus their resources on drafting roadmaps for improving campaign effectiveness. Request a FREE demo below to know how.

The solution offered helped the client to reap maximum benefits from a well-segmented and thoroughly analyzed customer database. Also, the client was able to compare scenarios, anticipate risks, identify new opportunities for churn reduction, forecast resources, balance risks against expected returns and work to meet regulatory requirements.

Quantzig’s churn analysis solutions  also helped the client to:

  • Improve accuracy in churn forecasts by 2X
  • Increase customer retention by 12%
  • Witness an increase of $3.2 Million in quarterly income

To learn more about how our churn analytics solutions can help you gain actionable insights and make smarter decisions that future-proof their businesses.

customer profiling

Customer Churn Analysis: The Key to Boost Customer Retention Rates for Businesses

customer churn analysis

Companies across industries spend most of their resources, time, and efforts on customer acquisition, despite knowing the fact that the cost of retaining an existing customer is much lower than acquiring a new one. Therefore, customer retention should be the top priority for companies. Also, for companies analyzing factors responsible for customer churn and estimating the risk associated with individual customers are both important components that help in devising a data-driven customer retention strategy. Customer churn analysis acts as a key to bring these elements together and offers insights that drive smart decision making across an organization. 

Banks, telecom companies, insurance firms, and energy services companies, are some of the businesses that often use customer churn analysis as one of their key business strategies. With the rise of businesses based on recurring revenue models, customer churn has become an important business metric for almost all companies.

Are you finding it difficult to build a predictive customer churn model? Churn analytics solutions may hold the key to success. Get in touch with our experts to know more.

Here are a few important reasons that make customer churn analysis important:

  • Customer churn analysis prevents revenue loss by saving extra costs in marketing and re-acquisition
  • The probability of selling to an existing customer is a lot higher than to a new prospect
  • Measuring the customer churn rate helps in calculating the customer lifetime value
  • Customer churn analysis helps in measuring the company’s health and long-term prospects
  • Customer churn analysis examines the rate of improvement in customer retention
  • Helps to identify customers segments that are best suited for your products or services

Steps to Enhance Your Approach To Customer Churn Analysis

Step #1: Calculate basic churn rate

The first step in customer churn analysis is to calculate the customer churn rate. There are several ways to calculate the churn rate. Customer analytics tools can help in calculating churn rate directly in real-time. This calculation not only helps in getting the quantitative metric of churn rate but can actually visualize it through the customer journey, understanding precisely the factors that lead to customer churn. Churn rate can be analyzed properly by understanding churn, which is of three types short-term, mid-term, and long-term. This duration is nothing, but the time period customers have been active before they decide to discontinue and cancel the service. To keep your customers engaged for the long-term, you need to reinforce the core value of your product or service consistently.

Customer acquisition management is a daunting task for companies. But our customer analytics solutions can help. Request a FREE proposal to know more about our portfolio of services.

 Step #2: Identify at-risk customers to reduce churn

Prevention is always better than cure, don’t you agree? Some customer segments, and more importantly, some customer behaviours predict churn more clearly than others. Customer churn analysis helps to identify these behaviours efficiently in real-time. This further helps in adopting measures to make these at-risk customers stay. Companies are leveraging customer analytics solutions like customer churn analysis that helps them enhance their ability to identify at-risk customers and thereby reduce customer churn rate. Additionally, customer churn analysis offers a data-driven understanding of customer preferences and helps to find the best way to reduce friction in specific situations. Furthermore, this can help companies to easily prioritize opportunities for improvement.

 Step #3: Focus on the entire customer journey

Customer churn analysis can provide optimum results only when the complete customer journey and experience have been analyzed well. Different customers have different experiences and customer analytics solutions can help you visualize each of them, the various touchpoints encountered, and the actions that are taken from there. If you do not analyze the entire customer journey and only focus on the last interaction, it can result in deriving inaccurate and misleading conclusions which will do nothing to stem the tide of leaving customers. Customer churn analysis can pinpoint the drivers of customer satisfaction in a way that traditional analytics solutions cannot. By analyzing and quantifying what matters most to customers, companies can consistently provide better customer experience and measure their impact on customer churn rate.

Our customized analytics dashboards help companies to devise better customer acquisition strategies. Request a FREE demo below to gain better insights.

Step #4: Discover your most profitable customers and focus on retaining  them

All customers are not equal, and while you may want to retain all, resources are not unlimited. So, you need to shift your focus on the most profitable ones first. Customer analytics solution plays a big role in this endeavour by providing a quantitative and detailed picture of the entire customer journey. It helps in customer churn analysis by interpreting how customers interacted with the product and the problems they faced at every step along the journey. Using customer churn models, companies can group their customers into segments defined by a readiness to leave, profitability, and their response to offers. This can further help in reducing customer churn rate significantly.

 Step #5: Engage with your customers at optimal times

Companies have the tendency to communicate with customers when they either want to upsell or when the customer is breathing fire. But for better customer churn analysis, companies can use several other techniques as suggested below to proactively and consistently interact with their customers:

  • Satisfaction survey – Companies can conduct short, open-ended customer surveys which let customers voice their opinions in a convenient and easy manner.
  • Social media – Customers spend most of their time on social channels. So, companies can use different social media channels to analyze their opinion and response to their product and brands.
  • Feedback bar – Companies can incorporate a feedback bar into products and mobile apps, so that it becomes easy for customers to ask questions, comment on product’s features and give their feedback.
customer analytics

3 Interesting Ways Banks Can Curtail Customer Churn Rate | Quantzig

Acquiring new customers is a more expensive process when compared to the retention of old ones. This is one of the main reasons why leading companies have put reducing the customer churn and improving their customer retention capabilities on their priority list. The banking sector is among the industries recording the largest rate of customer churn every year.

The rising competition in the market, which gives customers the liberty of choice and better offers, is one of the primary contributors to customer attrition for retail banking companies. To state the obvious, providing effective, meaningful service is key to reducing customer churn. But how can companies in the banking sector get there and bring down customers leaving them for competitor brands?  To identify early signs of potential customer churn, banks first need to start getting a holistic 360-degree view of the customer base and their interactions across multiple channels such as bank visits, calls to customer service departments, web-based transactions, mobile banking, and social media interactions. This would allow them to detect early warning signs of customer churn such as reduced transactions or stoppage of auto-pay or negative experiences, and you can take specific actions to prevent churn. 

At Quantzig, we understand the impact that customer churn rate can have on your business. And to help banking and financial services companies provide the best customer service and reduce customer churn rate, our team of experts have highlighted three strategies that they must consider:

How to Curtail Customer Churn Rate?

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