Feature
In today’s digital economy, consumers have quick recourse if they’re not happy with a company’s services: turn to social media, move to a competitor or simply disappear without a trace.
When a customer ends a relationship with a company — otherwise known as churn — the potential for increased profits is lost. A report by Bain & Co. stated that the longer a customer is with a company, the more profit they bring in.
So, how can you prevent churn from eating into your profits?
A New Approach
“With traditional models, you employ targeting rules to dictate which offers are given to which customers. It’s a grueling manual process.”
This is just what the platform’s latest release aims to solve, she added.
By integrating continuous monitoring of customer activity with machine learning, Albert claims that Amplero can now predict churn 300 percent more accurately than other solutions, and provide up to 400 percent better marketing retention.
“Now, we can automatically determine the best experience for each customer in any context, based on the highest expected lift for any experience,” said Albert.
Outperforming Today’s Churn Models
Olly DownsTiming
First and foremost on the list, said Downs, is timing.
“Because of the cadence of traditional churn modeling, marketers are being reactive rather than proactive,” he said. “A customer might have already churned by the time the reports are generated, rendering them inaccurate.”
With Amplero, stated a company release, the dynamic behavior of each individual customer is analyzed on a continuous basis.The results of this time-based modeling are constantly fed into Amplero's closed-loop platform, which then uses machine learning to discover and execute optimal retention marketing actions on a per-customer, contextual basis.
Imprecision
Another challenge with traditional churn models is that they typically only provide an aggregated report of customer activity, which doesn’t give a clear picture of whether or not a customer is in danger of churning.
Learning Opportunities
Webinar
Jun
6
The Future of Social Media: Emerging Trends and How to Stay Ahead of the Curve
The impact of emerging technologies like AI on social media
Webinar
Jun
7
The Building Blocks of Personalization
This webinar will explore how personalization can create powerful ecommerce shopping experience.
Webinar
Jun
8
Attracting—and Keeping—Your High-Net-Worth Investors
Join PwC to dissect their recent survey findings on a specific customer subset — high-net-worth investors.
Webinar
Jun
13
The Future of Contact Centers with AI at the Helm
Learn how to balance human intuition and interaction with the potential uses of AI to create delightful and lasting CX
Webinar
Jun
20
3 Steps to Unlock Your Customer Data and Drive Revenue
Discover how Twilio Segment’s #1 Customer Data Platform helps implement data-driven strategies.
Webinar
On demand
AI for Marketers: Optimize Personalization Across the Funnel
Understand the benefits of utilizing AI across your entire marketing stack
“Traditional models take a row of attributes from the customer, and use the current values of those attributes to predict the probability of a customer churning,” said Downs.
“On the other hand, by continually looking across a sequence of events, scoring and rescoring the customer, marketers can better determine at which point a customer is likely to churn.”
Wasted Resources
Finally, said Downs, because of the imprecision of traditional models, marketers end up wasting resources by extending promotional offers and freebies to customers who don’t intend to churn.
“Sometimes marketers end up messaging a large proportion of customers who aren’t going to churn, which could cannibalize their revenue or invoke hard costs, such as extending two months of game time for free, or sending a new device when they didn’t have to.”
With Amplero’s newest solution, concluded Albert, marketers can experience improved retention rates, while their customers can experience higher value in continuing an ongoing relationship with their brand of choice.
“By more accurately predicting churn, marketers will have enough time to execute messages or offers – perhaps with a sequence – that can be effective in influencing customer behavior,” she said.
When it comes to churn, concluded Albert, what companies need to ask themselves, is this:
“Are you predicting customer churn with a high degree of accuracy, and are you allowing time for marketing execution to take place?”
For More Information:
- A Beginner's Guide to Digital Experience
- Here's How to Measure Customer Health
- Swrve Bets on Predictive Analytics
- Customer Engagement is Usually a Sham
Title image by Zack Minor.
