Reducing customer attrition by actionable data science
Whether a company is in the B2B or in the B2C market, reducing customer churn, particularly the customers who leave voluntarily (i.e., the good ones) is a HUGE priority. Understanding some early signals of attrition and taking appropriate actions can help companies reduce such revenue attrition. With continuous pressure on revenue growth, reducing revenue leakage is a smart strategy as typically newly acquired customers take time to get to the revenue contribution of existing customers. Keeping the existing customers is a good first step to revenue growth!
Well data analytics can help! NLB Services is helping its clients to apply data science and technology to analyze oceans of data including customer transaction data, demographic data, customer interaction data and market data to understand the drivers of attrition. Statistical correlation does not necessarily indicate causality. The need is to bring business and process understanding to the table to establish enough confidence to identify causal factors to customer attrition.
And, it’s not just enough to establish causality. The key is to dive deeper and find causal factors that can be influenced and practical solutions can be put in place so that improvised business rules drive customer retention. Enterprises need to move fast – preserving existing customers is critical – data science combined with smart process design can tremendously help.