In this video, we will go through how to identify customers at critical risk of churn to help you optimize your churn prevention strategy.
Optimove's prediction model calculates a customer's risk of churn by looking at the common behaviors and attributes of previously churned customers. Each customer in one of the live lifecycle stages then has a probability to churn based on how they mirror these churn signals.
In order to prevent my customers from churning, I am planning a promotional campaign. But since I have a limited budget, I want to make sure I'm spending it in the most optimal way.
To do this, I’d like to send higher promotions to customers at higher risk of churn, and send lower promotions to customers at lower risk of churn.
So let me show you how to find high risk customers.
Firstly, I’ll go to Customer Explorer and create a new target group of customers in high risk of churn, which we can do using the risk of churn attribute. In this example, we will create a target group of customers in critical risk and high risk, which represents customers in the top 10% in terms of their risk of churn.
Now I will name my target group as High Risk of Churn, and here we see we have 4100 customers in our target group.
Now I can send these customers a campaign with stronger promotions to preemptively win them back before they churn.
To learn more about our Risk of Churn model, feel free to reach out to your CSM.