Customer loyalty is a fundamental objective for any company that wants to remain at the top of its market, whichever it may be, but to succeed it is absolutely necessary to invest time and resources both into identifying the problems that can lead customers to change company , in order to solve them in the shortest possible time, and also into the study of new strategies that are able to maximize retention.
We are talking about Anti-Churn programs which, in today’s context, are absolutely necessary if we want to avoid negative consequences in terms of lost revenue and brand image, as we have seen here.
However, churn is a multifaceted concept, since it can be a non-renewal, a cancellation, an unsubscription, a withdrawal or an interruption of purchases or use of the product or service. For this reason, simply predicting its probability is not enough: it is also necessary to predict the Customer Lifetime Value and the expected time that a customer will stay with the company, in order to obtain an Anti-Churn score that is able to summarize these two key indicators and return the value of each customer over time.
It is now possible to know this information using Artificial Intelligence which, by learning the characteristics common to contacts who have abandoned the brand in the past, is able to give company management a complete, continuously updated, picture of the customer base, thanks to machine learning algorithms.
Using AI, companies have the ability to proactively approach their customers and to set ad hoc strategies for each situation, capable of minimizing the probability of churn, such as:
- Offer discounts on existing services to customers who have a high-risk of churn;
- Implement cross-selling campaigns with discounted or free products for those with a high anti-churn score;
- Setting up retention campaigns designed for those customers for whom the probability of Churn rises;
- Reserve premium services for customers with high Customer Lifetime Value.
In this way, the company has not only the possibility of keeping your customers faithful to your brand, but also the opportunity to increase sales and turnover by managing to reverse the situation on those profiles who, one step away from the door, are instead happily recalled to the brand thanks to exclusive offers tailored to their needs.
The application of Artificial Intelligence within Retention processes therefore proves to be win-win for all intents and purposes, a step towards the future capable of satisfying the needs of both the customer and the company.
If you want to know more, request a demo of BigProfiles.