Marketing: Churn/Retention Marketing

Reversing Customer Churn by Improving Retention Marketing

Lift ChartIn this study, customer data from a telecommunications provider was used to illustrate how the most important criteria were identified, then used in building models to predict churn, and finally to assess the models’ predictive success when compared to actual churned customers (lift chart to the left shows this comparison — highest curve is the best).

The objective of this study is to illustrate how a company can increase revenue by retaining more existing customers through identification and preemptive marketing programs rather than relying on the acquisition of new customers. In addition, a company can further grow sales by predicting which first-time customers won’t return unless they are offered an incentive to stay.

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