Customer churn refers to the propensity of customers to cease doing business with an organisation - either by choice or default - as well as the value lost. It is a well-known business fact that the cost to retain a customer is far less than aquiring a new one. As a key business metric many organisations show particular interest in how to pre-empt possible churn and use this information to implement effective retention strategies. Specific studies have indicated that a 5 - 10% reduction in customer churn can yield up to 60% additional profit.
"They [Lightstone] bring a new dimension to understanding how your customers behave.
Having them onboard with strategic planning is an enlightening experience"
- Francois Viljoen GM: Dealer Development and Training
Customer Churn Modeling Process
By combining variables such as credit, home loan, demographic and development activity data with client specific data, Lightstone is able to meaningfully segment the database, identifying the typical types and triggers of churn and isolating those customers posing the highest risk for churn or defect.
With this valuable information at hand, organisations are able to develop and implement the most appropriate retention strategies for each segment and mitigate the risk of customer churn to the business.
Contact us for more information and pricing of Customer Churn Modeling.