Summary
Churn Model for an e-commerce firm followed by score based pro-active retention campaigns
Problem in Hand
A B2B e-commerce firm was fearing loss of customers and wanted to incorporat a retention program.
Solutioning
We first helped our client define “attition” in their portfolio and then analyzed the data to understand what was the rate of attrition. We also analysed what kind of customers are we losing and when. Post that we developed a churn prediction model to predict the probability of attrition for each customer and a customer attractiveness score based on historic purchase behaviour. Taking into account both scores a monthly retention program was run to retain the customers. A research intiative was also undertaken among high attractiveness score customers to understand the reasons for attrition.
Impact