How is your Customer Retention? Are you experiencing significant Customer Churn?
Gartner estimates that around 80 per cent of future revenue comes from just 20 per cent of existing customers, echoing the classic Pareto 80-20 rule.
Juxtaposing it with the Harvard Business Review’s claim that it is nearly 25 times more expensive to acquire a new customer than to retain an existing one.
Prevent Customers from leaving by identifying at Risk Customers through Predictive Analytics. Customer Retention.
- It costs 6-7 times more to acquire a new Customer than to retain an existing one – Bain & Company.
- 89% of Consumers purchase from a competitor following a poor Customer experience – Harris Interactive, 2011 Customer Experience Improvement study.
- Only about 4% of unhappy Customers complain. 96% just go away. Harris Interactive, 2011 Customer Experience Improvement study.
A 5% increase in Customer Retention increases profits up to 125% – Bain & Company.
- Probability of selling to an existing Customer: 60-70%, Probability of selling to a new one: 5-20% – Marketing Metrics.
- A 2% increase in Customer Retention has the same effect as decreasing costs by 10% – Leading on the edge of chaos, Emmet Murphy and Mark Murphy.
- 68% of Customers leave because they think you don’t care about them – Rockefeller Corporation.
Predictive Analytics provides you the necessary insights as to what Product or Service to sell to whom and when. It will alsohelp identify when an intervention is needed to prevent a Customer from leaving your company.
For example, using a Customer segmentation model, companies through the development of Predictive Analytic Models can identify Customers using predictions based on measurements of their past responses, potential revenue, and flight risk they represent. They can then standardize actions based on a Customers value to your company.
See sample case studies on our web site: Case Studies
Contact us for a free exploration on how we can customize a Predictive Customer Retention model for you.