Customer Modeling
Retention modelling
Which customers are at risk of leaving? Who is worth saving? As above, we use past behavior to create a propensity model that predicts the risk of attrition or churn. We then segment your customers by desirability and value and build a retention framework with different strategies for ‘at risk’ customers from different segments. This approach allowed one client to reduce monthly customer attrition by 25%.
Customer mapping and targeted acquisition
Who are your customers? Can concentrations of your most profitable customers be viewed on a map? What are the profiles of these customers according to the 2006 Census? Can you find new customers similar to your most profitable ones?
Mapping your data
Viewing where your most profitable customers are concentrated on a map is a lot easier than trying to understand a table of data. The profitability of customer areas can be coloured (according to value) and labelled with suburb, postcode or whatever is suitable for your business. We can provide customized maps that show you which suburbs/postcodes contain your best customers and therefore the likely areas to target for new profitable customers. In addition, it may be useful to know which areas where you have no customers as potential new areas to market to.
Customer Profiles using CENSUS 2006 data
Understand your customers by using insights from the 2006 Census. Concentrations of customers in certain areas when linked to Census data will reveal trends according to age, income, marital status, housing etc to enable you to target likely candidates that may be your new profitable customers. For example, if you discover that a key profitable customer area is Castle Hill (2154), the Census data tells us that this area consists of mostly Australian Born families (consisting of married parents 40-59 years and children 5-19yrs), are mostly Catholic/Anglican, drive a car and either own or are in the process of purchasing a house.
Targeted Lead Generation
Once we have identified the attributes of what a good existing profitable customer is within your database we can then generate lists of potential new customers that have similar profiles. Rather than marketing to a random selection of new leads you will be able to now target campaigns to those both likely to respond and be profitable.