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Preventing Churn Using Predictive Modeling
Alex HerbertSales Manager
James CousinsSr. Statistical Analyst
March 26th, 2019
Agenda• Who We Are
• Implications of Churn
• Ways to Prevent Churn
• How we can help
• Q & A
About Rapid Insight
Founded in 2002 and headquartered in Conway, NH
Predictive analytics and data preparation software company empowering professionals of all skill levels to turn raw data into actionable insights
Serving hundreds of customers worldwide, ranging from healthcare to higher education
The Veera platform enables users to easily build predictive models, perform advanced data analysis, and share insights
Code free (but code friendly)self-service analytics platform
Veera Construct enables everyone from citizen data scientists to PhD statisticians to turn any data into actionable information
Veera Predict enables users of any skill level to analyze data and build predictive models in a fraction of time required by other tools
Veera Bridge empowers organizations by democratizing data with its cloud-based collaboration platform
The Veera Platform
Preventing Churn Using Predictive Modeling
Our Simple Argument Against Churn
It’s critical to your businessto be on top of churn
We offer a very convenient solution to prevent churn
There are several ways to approach churn
Customer Churna.k.a. Customer Attrition, Turnover, Defection,…
• Losing Customers (voluntarily or involuntarily)
Customer Retention(avoiding churn)
• SafeguardsRevenue
Reputation
Morale
Customer Churn•Acquiring a new customer is between 5 and 25 times more expensive than retaining one1
• Increasing customer retention by 5% can increase profits by 25-95%2
1. www.hbr.org/2014/10/the-value-of-keeping-the-right-customers2. www.bellycard.com/resources/customer-retention-marketing-insights/
Analytics in Customer Churn
Descriptive
Predictive
Proactive
DescriptiveAnalytics in Customer Churn
•What is your churn rate?
•Where is churn occurring?
•Who is churning?
Descriptive
Predictive
Proactive
PredictiveAnalytics in Customer Churn
•What factors predict churn?
•How much churn are you expecting
Descriptive
Predictive
Proactive
ProactiveAnalytics in Customer Churn
•Reach out to those likely to churn
•Make changes to mitigate churn
Descriptive
Predictive
Proactive
Prevention Strategies1
Personalization
Learn from Customers (surveys, feedback)
Gamification & Referral programs
Subscriptions
Social Proof
Education- materials to support end-users' usage
"Surprise reciprocity" (providing unexpected benefits to build loyalty)
Thanking Customers (Zappos, Chewy)
Develop towards making their lives more convenient (Starbucks, apps)
Have a "mission" (Toms, Warby Parker)
1. blog.hubspot.com/service/customer-retention-strategies
Churn Use-Case: Telecommunications
DescriptiveAnalytics in Customer Churn
•What is your churn rate?
•Where is churn occurring?
•Who is churning?
Descriptive
Predictive
Proactive
ConnectIntegrate data in any format, from virtually any source
PrepareCreate step-by-step processes using easy, drag-and-drop visual workflows with no coding required
AnalyzeBuild and schedule jobs to run automatically, or run on-demand analyses
ShareWrite back to databases, create and disseminate reports, publish dashboards to visual analytics tools such as Tableau, or output datasets for predictive modeling
PredictiveAnalytics in Customer Churn
•What factors predict churn?
•How much churn are you expecting
Descriptive
Predictive
Proactive
What is Predictive Analytics?= Churned
= Retained
% of Plan Utilized
Churn Likelihood
Predictors of ChurnOutcome: Customer Churn
Predictor Not a Predictor
• Has children
• Marital status
• % of plan used
• Weekend vs Weekday ratio
• Bill delivery method
• Gender
Customer Churn Predictions
Plan Type # of Customers Predicted Churn Rate Predicted Loss
Basic 1,350 17.27% 233
Family Minutes 14,956 2.49% 373
Starter Package, Basic 2,611 10.29% 269
Starter Package, Full 1,083 8.71% 94
Fully TransparentAll methods and calculations performed are easily viewable
Automated Data MiningIdentify statistically significant data variables without manual effort
Easy to UseNew users can build expert models within two hours of training
No Programming NeededUse simple pick lists instead of programming or custom command languages
Automated Modeling ProcessBrings complex data analyses and predictive model building to users of any skill level
ProactiveAnalytics in Customer Churn
•Reach out to those likely to churn
•Make changes to mitigate churn
Descriptive
Predictive
Proactive
Prevention Strategies1
Personalization
Learn from Customers (surveys, feedback)
Gamification & Referral programs
Subscriptions
Social Proof
Education- materials to support end-users' usage
"Surprise reciprocity" (providing unexpected benefits to build loyalty)
Thanking Customers (Zappos, Chewy)
Develop towards making their lives more convenient (Starbucks, apps)
Have a "mission" (Toms, Warby Parker)
1. blog.hubspot.com/service/customer-retention-strategies
Inspire CuriosityDemocratize data by allowing users to seamlessly view and explore data
Power ExplorationAllow anyone, in any department, with any skill level, be inspired by data
One Stop for All InsightsA single hub allows you to streamline data and report publishing
Self Service ReportingBy supplying reports or datasets through Veera Bridge, have peace of mind that your users can now answer all questions dynamically
Personalized Demo
data prepreporting
predictive modelingadvanced analytics
cloud-based reportingdata exploration
To schedule your personalized demo contact [email protected]
Questions?
![Customers Churn Prediction using Artificial Neural ... · devising of churn policy [16] is depicted in Fig. 2. Fig. 2. The Six Steps for Customer Churn Prediction. Churn prediction](https://img.pdfslide.us/doc/110x75/5e71a26fb4acff71e10cc1fe/customers-churn-prediction-using-artificial-neural-devising-of-churn-policy.jpg)
