Due to Covid-19, customer behaviours changed. Unfortunately, consumers today are in an uncertain situation and the priorities are no longer the same as before. The obvious consequence is a direct impact on the churn rate. This is where data science can be game-changing and help firms to better optimize their business strategies.
Customer churn occurs when customers or subscribers stop doing business with a company or service. It is a common issue in business operations. Most of the time, when you analyze the cost of acquiring a new customer, you realize how cheap it is to retain an old one. The churn reasons behind can be an inappropriate pricing model, a low customer experience, a lack of client consideration, a poor support, or an unpleasant reputation. Among these reasons, to anticipate too much business loss you must identify your client motivations. At this moment data becomes your best friend.
Analyzing data from churn behavior and trying to understand why and which customers are abandoning can change the way your business is managing customer relations. Customer data conceals many hidden features translating emergent complex behaviors. But you have to consider also sector data, environment data, low signal data, etc.
Those features can only be analyzed and regularly monitored with appropriate algorithms and that’s where Data Science can become a turning point, building a 360º predictive churn model.
To make it possible, you need to centralize all this data in a platform that is used as a single source of truth.
In order to be effective, these churn analysis models, like any other predictive model, have to make sure that heterogeneous data can interact with each other properly, but also to be based on reliable, up-to-date and secure data.
In a centralized platform, you have the opportunity to integrate your own data from any source (CRM, ERP, SRM, website…) with external data, such as data from your peers, companies with similar characteristics, and churn behaviors. Looking at how customers are churning in your company as well as in other businesses can enrich your data set and help you adapt your business strategy quicker during changing times.
In conclusion, to start this period of turmoil serenely, it is preferable to keep your customers and develop new business with them, in complete confidence.
Oakland is a Swiss based company whose mission is to guide businesses through the complex challenges of data security, patrimony, valuation and capitalisation. Our ultimate aim is for you to use data in a manner that respects the highest standards of data protection, whilst also driving value for your business. Oakland maintains a significant GDPR practice and this coupled with our proven expertise in data management has seen many companies adopt our services in different parts of the world.