Churn vulnerability modeling
To pinpoint existing customers that are vulnerable to churning based on the characteristics of others that have churned.
key questions answered
What causes your customers to churn?
What characteristics do your churners share?
How predictive are those characteristics?
Which of your active customers are likely to churn? How likely? Which are preventable?
What engagement strategies can be activated to prevent them from churning?
paradoxes approach
- Analyze prior churners and their attributes
- Perform a driver analysis of those churners using an assortment of statistical modeling techniques
- Overlay the driver analysis on existing customers
- Score and rank churn vulnerability among the population
- Develop strategies to mitigate churn for the vulnerable populations (this step requires additional research often a mix of qualitative and quantitative methods)