Reducing customer churn
Reducing customer churn and increasing retention in a timely fashion to generate leads and to focus on the specific needs of customers
The client, one of the largest plumbing and drain-cleaning services in North America, had problems with customer churn. To improve customer retention, the client asked Intuceo to identify which customers were most at risk of churn and what services they would most likely request. With this knowledge, the client could replace its one-size-fits-all email marketing with targeted campaigns that address the specific needs and service requirements of customers.
Using an ensemble model, Intuceo analyzed the client’s customer- service data and engineered time- dependent attributes that captured the periodicity of service visits (e.g., first service date vs. last service date, last service date vs. next service date, etc.). Based on the intervals between service visits, the target attribute, broken into two classes, was determined by:
Class 1: customers with service interval < 180 days = low risk of churn
Class 2: customers with service interval > 180 days = high risk of churn
Customers were also classified by likely service request type.
Hundreds of actionable insights were generated. The dozen or so patterns that would yield the greatest revenue were presented as clear charts (see the figure) and simple if–then rules that can inform strategic email marketing.
The client can now rank order customers by (a) when they are likely to request service and (b) service type. This enables the client to focus on customers who have not called within six months. The client can also entice customers to place orders by tailoring offerings to meet their needs. This results is higher retentionDOWNLOAD NOW