The Client, an international Telecom company, wanted to predict which of their customers are most likely to churn and thereby proactively retain churners, in order to increase Customer Lifetime Value.
The risk of waking a dormant customer (a customer who wouldn’t churn) is just as costly for the Client as not contacting a churning customer. It might have the opposite effect of pushing the customer to churn. Therefore the precision of identifying customers who most likely to churn was critical.
Using existing data from the Clients system, purchased services, activity and responses to previous marketing efforts, One Prediction predicts each individual customer’s probability to churn. This enables the retention team to focus their resources on the customers most at risk and offer them incentives to remain loyal.
In less than 2 days after uploading customers’ data, the Client was able to predict accurately 76% of the customers’ churn behavior. This helped the Client to take informed decisions on the next actions towards each Client, while limiting the loss of waking up dormant customers. That meant a breakeven of the project within a few weeks.