Retention (Churn) Analysis
Customers are becoming increasingly fickle with where they place their business and acquiring new customers is generally significantly more expensive than reactivating existing customers. To maximise the chance of keeping a customer and minimising the spending on acquiring new customers, it is important to perform analysis of customer behaviour. Predictive models can be developed to look for trends in customer behaviour and identify customers who are likely to default. This information can be used together with predicted customer value information to identify customers that the business would like to keep to ensure appropriate, targeted campaigns can be developed to reactivate customers who are likely to churn.